In the light of the big gold price dive today, Ross Norman, indirectly suggests that gold may yet have the last laugh and general equity holders should refrain from schadenfreude.
by Ross Norman, MineWeb.com
After gold slipped gently below the important technical level of $1540 this afternoon, it appeared that short sellers and heavy long liquidations had done their worst – but more was to come. $1540 was the market low in 2012, a level it tested and held in October 2011 and May 2012.
Gold investors have been noticeably absent and are perhaps now fully desensitized to bad news as the lacklustre price action in the wake of Cyprus, North Korea and weakening US data proved.
Shorting gold will remain a popular sport while there is money in it and there has been a noticeable absence of bounce in the price after each sell-off, prompting repeat attacks to the short side. Next support levels seen at $1470 then $1340.
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