By: Forexter
16/4/2013
Topic:
Gold had traded a new low recently, which resulted a 22% fall from the previous new high of USD1920 an ounce. There are two types situation that occurred due to this catastrophe phenomenon:
1) Majority of the famous US analysis and research firm, are quite pessimistic about this and are concerned that the bear has indeed arrived according to the standards which is a sharp fall of more that 20% from the last peak would indicate a start of bearish trends
2) Consumers markets from the Asia region seems to be quite 'nervous', 'anxious' and 'excited' as they do believe that this would be the 'opportunity' to start buy in as traditionally gold would be the 'best' investment through historical events especially during war ridden era. And yes.... it may be true as there were someone quoted "Apple Inc's share has fallen 40% from its peak, so what is there to fuss about gold?". But Asians being conservative, with all these analysis and statements issued by the 'experts', it is no doubt that even the ever gold frenzy Asia market would be affected, but would it be significant enough to create a deeper wound cut towards this gold fall?
3) Nevertheless, the problems in Cyprus which trigger the attention of the world which has the possibility to sell off 10 tons of gold reserves to curb their problems, which might lure problematic countries such as Spain & Italy to follow, which will bring gold prices to a newer low, but these are just mainly assumptions and possibility, but will it come true? We would never know.
4) The possibility of US to stop their Quantitative Easing policy seems to be affecting the gold price as well although their economy data's doesn't seem to be too optimistic but their market seems to be relatively strong and bullish. As such, the US stock market seems to be having more attention paid by the investors and gold seems NOT to be that attractive for these coming months to come.
But from InvestACE's point of view, all the "key" points that was listed above seems to be worrying, but bear in mind, all these were just assumptions and possibility which is nor you or me can be in control. One fact is for sure, gold is a non renewable resources and it will be depleted completely one day.... The value for gold should be there in the long run, when the majority seems to sheer away from gold, we should sit down, hold back and consider the possibilities and the facts, weigh out the chances and take necessary actions needed. We would advice traders to actually take this opportunity to buy in but with the condition to do it separate stage and to have the holding power in long term basis.
We would expect a consolidation or downward movement in the short period of time due to the 'usual' market demand for gold which coincidentally fall at these low season due to low demand, an improvement during Q3 of the year may brightened up the market but how high would it go? It is still too early to know.
Disclaimer: The information and analysis mentioned above are solely based on Invest ACE’s personal technical analysis with the aid of professional training, decades of experience and meticulous foresight; Invest ACE shall NOT be held liable for any losses (financially or otherwise) incurred by any parties relying on aforementioned analysis without prior professional consultation. Should you wish to find out more on how to invest wisely, do not hesitate to contact Invest ACE via investace126@gmail.com.
