2009/03/04

Buyer Beware? How About Buyer Aware?

Gold prices continued to trade sideways near $990 overnight, as little in the way of fresh news was digested by the trade. Aside from yesterday slump in the Dow, which spilled over into losses in the Nikkei as well, players had little to choose from as a motivator to load up on more bullion. The gold ETF is reflecting the same wait-and-see attitude with a stall at the 1,029 tonne level for the third session. While the current range ($975 to $1005) is not extraordinarily wide, the metal has shown the ability to run the entire course during a single trading session - if news flows warrant. The market's bias -for the moment- is towards lower levels, and such tests should actually be welcomed, lest the speculative setup for a harder fall resulting from nonstop/non-backed and filled gains seems more appetizing.

From: www.resourceinvestor.com
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