For Clues to Gold Prices in 2013, Look Beyond US Dollar

For Clues to Gold Prices in 2013, Look Beyond US Dollar

This week we’ve seen a decent rally in gold, silver, and other precious metals and precious metals mining stocks, sparked off probably by the fiscal cliff deal. As is the case with any strong rally, there always comes a correction (or at least a consolidation) afterwards. The one that took place on Thursday was indeed of significant size but did not – in most cases – invalidate the rally. There were even cases that did not experience any correction at all, such as platinum that held remarkably well. Gold stopped at 200-day moving average, correcting around 72% of the rally.

There was some turmoil in today’s pre-market phase – gold and silver plunged dramatically, probably over the surprising information coming from the Fed about the possibility of ending the monetary stimulus. We doubt that this will really be the case, but it seems that this piece of information will manage to make those less convinced about the gold story to sell their holdings and this is what we’ve seen today before the market opened.

Read more: http://1goldinvestment.com/for-clues-to-gold-prices-in-2013-look-beyond-us-dollar/