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 The intuition would always say that the US teetering on the verge of a fiscal cliff – Congress having just withdrawn a voted compromise – would get gold on the up.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.
Stay tuned.
The Slog 