Precious metal drops $26, still dropping in Asia
Gold dropped $26.16 on the New York Exchange yesterday (Thursday). The descent began at opening, made a minor fightback early afternoon, and then collapsed back to $1646 at the close. In just 10 minutes of Asian trading today (5.11 am GMT) the metal dropped a further $4.68, then reversed. It is currently at $1641.87
Gold dropped back far through its 200 day moving average yesterday, in a plunge that shows once again how no market on the planet is currently behaving naturally. The intuition would always say that the US teetering on the verge of a fiscal cliff – Congress having just withdrawn a voted compromise – would get gold on the up. Not in 2012.
I don’t have the numbers or the graphs to hazard a guess at what’s going on here: but the primary long-hold trend in gold is still very much UP.
I’m not qualified to offer advice, but the conclusion for anyone paying attention is obvious…Asia is buying already.