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Gold is reaching for the 200 Day Simple Moving Average (SMA) once again. If it were to coincide with this important indicator, it would be the first occasion it would have done so since the start of 2013. Therefore this situation is one that must figure large on the radar of all traders.
From the fundamental point of
view, and as pointed out here on many occasions, the biggest single factor in
the price of the precious metal is the expectation on the part of traders of
whether Quantitative Easing in the USA will be discontinued sooner rather than
later. Many commentators and market participants have taken the view in recent
times that tapering of QE has been long fingered, due to the fact that the debt
ceiling negotiations in Congress have not been definitively dealt with and
could flare up again in the New Year of 2014.
Two things: (1) The political theatre inWashington
has probably run its course due to the damage it seems to have done to the
public image of the Republican Party and therefore its chances of re-election
and (2) it can be truly amazing how quickly things get priced-in in the currency and commodity markets. When everyone else is discussing it the market will have moved on.
Two things: (1) The political theatre in
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