Wow. Gold investors took profits overnight with abandon. Spot gold dropped $100, to $910 -- a level last seen in mid-February and the biggest downward 24-hour move for gold in 28 years.
“After a great run for gold in the first 10 weeks of 2008,” writes Byron King, “large funds are taking profits to round out their first quarter. Some are liquidating to meet margin calls. When gold passed $1,000 and moved up toward $1,030, there was a serious drop in physical demand, particularly from the jewelry users. Demand from India just plain fell off a cliff.”
“After a great run for gold in the first 10 weeks of 2008,” writes Byron King, “large funds are taking profits to round out their first quarter. Some are liquidating to meet margin calls. When gold passed $1,000 and moved up toward $1,030, there was a serious drop in physical demand, particularly from the jewelry users. Demand from India just plain fell off a cliff.”
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