I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!


Click to email CW8888 or Email ID : jacobng1@gmail.com



Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

Think Investing as Tug of War - Read more? Click and scroll down



Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Saturday, 18 May 2013

Gold Drops for Seventh Session as Dollar Rises

 
Decades in the market has taught him this .....
 
 
To him, you are either holding (investing) stocks for yield and over long run you won't lose money or you are gambling in stocks, Forex, Gold or Crude oil. When you gamble, you must know how to run fast; otherwise, you will get killed!
 
 
 
                     
Source: World Gold Council
       
Gold fell for a seventh straight session on Friday, its longest losing streak in four years, as the dollar rose to the highest since 2008 after some Federal Reserve officials said the central bank should end its stimulus for the U.S. economy.

Investors also rejected gold's safe-haven lure after a May reading for U.S. consumer sentiment hit a near six-year high, showing Americans are feeling better about their financial and economic prospects.

Major U.S. stock indexes were on track to close up for a fourth straight week as the dollar rocketed to a 4-1/2-year high against the yen.

Spot gold was down 1.6 percent, hovering at a four-week low below $1,364 an ounce.

U.S. gold futures for June delivery settled down 1.6 percent at $1,364.70. For the week, it fell more than 5 percent.

Some traders expected the sell-off to not let up until gold lost between $200 or $300 more per ounce, pushing it back to levels last seen in the first quarter of 2010.

"With a few more hard losing sessions, we could be down to between $1,050 and $1,100. It could happen over two weeks or it could happen in a couple of days if the market plunges $100 a dip," said Frank McGhee, head precious metals trader at Integrated Brokerage Services in Chicago.

"There's heavy rotation of money from gold into the stock market as the U.S. economy keeps getting better and the need for Fed stimulus gets weaker by the day," McGhee added.


A trio of hawkish regional Federal Reserve officials have called on the central bank to stop buying mortgage-backed bonds, citing the recent improvement in the U.S. housing market.

San Francisco Fed chief John Williams, one of the three, said he expected U.S. stimulus action to ease from this summer. Richard Fisher, head of the Dallas Fed, meanwhile, said "the efficacy of continued (bond) purchases is questionable."

Ultra low interest rates and hundreds of billions of dollars of Fed stimulus money have fueled higher prices for gold and other commodities over the past 3 years. Despite better U.S. economic data since the start of this year, Fed Chairman Ben Bernanke has been reluctant to take his foot off the stimulator pedal, on grounds the recovery has been fragile.

Exchange-traded products in gold -- investment vehicles that give investors exposure to bullion through issuing securities backed by the physical metal -- have seen huge outflows this year.

The largest, New York's SPDR Gold Trust, reported an outflow of another 5.7 tonnes on Thursday, bringing the drop in its holdings this week to more than 10 tonnes.


Physical demand for the metal, which spiked after prices posted their biggest two-day drop in 30 years in April, showed signs of softening.

Buying in India, the main consumer of the precious metal, had fallen significantly from Monday, which saw the celebration of Akshaya Tritiya, one gold trader in Singapore said.
 

2 comments:

  1. I think it's a healthy correction for gold. I can't wait for it to go below 1300 so i can nimble a bit of the yellow metal myself.

    ReplyDelete
  2. If you check, when US $ > , usually GOLD & OIL <.

    ReplyDelete

Related Posts with Thumbnails