Market Update GoldCore 24 June 2013
Market Update GoldCore
Ron Paul: Gold Could Go To 'Infinity'
Today’s AM fix was
USD 1,283.25, EUR 978.98 and GBP 836.21 per ounce.
Friday’s AM fix was USD 1,290.25, EUR 976.28 and GBP 833.33 per ounce.
Gold climbed $15.50 or 1.21% on Friday and closed at $1,294.00/oz. Silver reached a high of $20.121 and finished up 2.19%. Gold and silver were both down on the week -6.93% and -9.07% respectively.
Gold has fallen another 1% this morning and remains at its lowest level since September 2010. While gold rose over 1% on Friday, it recorded its worst weekly performance - down nearly 7% - since September 2011.
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Traders are the most bearish in 3 1/2 years, with 15 analysts surveyed by Bloomberg expecting prices to fall this week. Six were bullish and five neutral, the largest proportion of bears since January 2010. Gold rose in February 2010 and was 27% higher by year end 2010.
Sentiment is as bad as we have
seen it in many years which is bullish from a contrarian
Weak hands have been washed out of the market and strong hands are accumulating again on this dip and will continue to do so in the coming weeks.
Falling gold prices are beginning to impact the gold mining sector in a big way. Newcrest Mining Ltd.’s decision to write down the value of its mines by as much as A$6 billion ($5.5 billion) will lead to the biggest one-time charge in gold mining history. It also heralds pain for competitors. Barrick Gold Corp., the world’s biggest producer, Newmont Mining Corp. and Gold Fields Ltd. may be next, according to Jefferies International Ltd.
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Gold Support and Resistance Chart – (GoldCore)
Ron Paul still likes
gold. In fact, he thinks it could go to "infinity".
"I think If you look at the record of the value of the dollar since the Fed's been in existence we have about a 2 cent dollar where gold was worth $20/oz. I would say the record is rather clear on the side of commodity money. And history is on our side, 6,000 years of history shows it maintains value while paper money self destructs.
I would say that long term as long as we have excessive spending and excessive computerized money you're going to see gold go up and eventually if we're not careful it could go to infinity while dollar could collapse totally.”
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