Wednesday, October 16, 2013

Arensberg - Gold Likely to Rally on Asian Buying after Debt Deal Spike Lower

Gold Coins Bars Austrailia big pileMyra P. Saefong and Victor Ricklaitis wrote on Tuesday: 

SAN FRANCISCO (MarketWatch) — Gold futures settled Tuesday with their fifth loss in six sessions as traders monitored the standoff in Washington and clung to hope that a deal to raise the debt ceiling would be reached this week. 

But just ahead of the close of regular trading for gold, prices pared some losses as White House spokesman Jay Carney said a final debt deal remains elusive.

December gold lost $3.40, or 0.3%, to settle at $1,273.20 an ounce on the Comex division of the New York Mercantile Exchange after touching a low at $1,251 in overnight electronic trading. Prices gained 0.7% on Monday after closing at a three-month low on Friday.

Silver for delivery in December finished with a loss of 16 cents, or 0.8%, to $21.19 an ounce after tacking on 0.5% a day earlier.

“Conventional wisdom is that gold will sell off on the announcement of a final debt-limit increase,” said Gene Arensberg, editor of the Got Gold Report.

But prices having dropped to lows in the $1,250s suggest that “conventional wisdom may get its head handed to it with so many leaning in one direction” — toward a gold selloff, he said.

“In other words, with so many people leaning toward the idea that gold will sell off on a debt-limit deal, it has me looking for the exact opposite,” said Arensberg. “I think gold would have already broken much lower if that view was ‘real’.”

Given all that, he said he would not be surprised by an initial spike lower in gold prices, followed by “an outside reversal and rally with so much buying coming in from Asia.”...

For the full story... Source: Dow Jones  MarketWatch

http://www.marketwatch.com/story/gold-dips-as-lawmakers-toil-in-washington-2013-10-14

Original title and subheader: 

Gold settle with fifth loss in six sessions

Prices pare some losses by the close as White House says debt deal elusive


Comments



The Original
Vulture Speculator

Trading gold, silver and mining shares since 1980 with a focus on taking advantage of volatility extremes, Gene Arensberg analyses the markets through a basket of technical and fundamental indicators and shares his findings from time to time here at Got Gold Report. Mr. Arensberg has been quoted in the Wall Street Journal, Dow Jones MarketWatch, USA Today and dozens of other news organizations.

"I've been a huge fan of Gene and his amazing work for years..."

Brien Lundin, CEO, Jefferson Financial, Host of the annual New Orleans Investment Conference and Publisher of Gold Newsletter


Contact Us