Monday, June 8, 2009

Today in Gold: Monday, June 8

Each weekday, Cash4Gold will troll through the web's gold banter and post some of the bigger or more interesting stories. Following is a run-down of today's features:

"Gold, Metals Slide on Dollar's Strength"
Author: Allen Sykora

Main Points: Gold for August delivery fell $10.10 to settle at $952.50 an ounce today, a slide driven primarily by a strengthening dollar.

George Gero, vice president of RBC Capital Markets Global Futures, pointed to a sell-off of Comex gold, losing nearly 10,000 contracts.

"I think there is a little more downside to this," said Daniel Pavilonis, senior market strategist with Lind-Waldockas, "long as the dollar continues to rally," He expects gold to rise again once the dollar weakens.

Analysis: The slide continues. Not only has gold fallen nearly $30 spanning the past two sessions, but the price of gold has fallen $10 or more in three of the past four (including Wednesday, when it fell $18.80).

Experts had issued the warning that gold historically drops sharply upon approaching or briefly eclipsing $1,000 an ounce. That certainly has been the case since last week, after a more or less spotless month of May in which $1,000 seemed to be automatic.

No comments:

Post a Comment