Gold Ends Down Nearly 2% As Crude Tumbles

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"Since the bull market began over 5 years ago, gold has moved up in a two steps up, one step back fashion," said Peter Grandich, editor of the Grandich Letter, in emailed comments."This latest pullback is the step back part," he said. "And each time it pulls back, bearishness greatly increases. It's when the pullbacks cause euphoria one should worry, but not now."

Gold for December delivery dropped $13.70, or nearly 2%, to end at $800.30 an ounce on the New York Mercantile Exchange.

"You're seeing gold decline today off of some end-of-month profit-taking in gold, energies and across the board in commodities," said Zachary Oxman, a senior trader at Wisdom Financial.

"A strong dollar seems to be pushing gold lower as well," Oxman said in emailed comments.

On the currency markets, the dollar gained against other major currencies Wednesday, but was off earlier session highs after Federal Reserve Vice Chairman Donald Kohn hinted that more interest rate cuts could lie ahead...

On Tuesday, the benchmark gold contract fell by $12.50 an ounce."Since the bull market began over 5 years ago, gold has moved up in a two steps up, one step back fashion," said Peter Grandich, editor of the Grandich Letter, in emailed comments."This latest pullback is the step back part," he said. "And each time it pulls back, bearishness greatly increases. It's when the pullbacks cause euphoria one should worry, but not now."

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