Gold recovers Tues's sharp drop; "buy the dips"
From Chris Mullen at GoldSeek.com...
Gold Prices fell nearly 1% by late trade in Asia on Tuesday, and dropped to as low as $722.50 in London before rallying back higher throughout New York trade to end slightly off thehigh of the session with a loss of just 0.04% for the day.
Silver dropped to as low as $13.21 in London before it also rallied back higher for most of trade in New York and ended near its high of the session with a loss of 0.15%.
Gold Priced in Euros gold fell under €517, platinum remained unchanged at $1333, palladium gained $1 to $339, and copper fell slightly to about $3.65. Gold and silver mining equities fell a little over 1% at the US open and remained near their lows for the rest of the day.
On the data front, existing US home sales last month were reported to be the fewest since August 2002 and Consumer Confidence was the lowest since November 2005. Today at 12:30 GMT brings the US Durable Goods Orders report for August expected at -3.5%.
In the broader markets, crude oil fell back under $80 as tame geopolitical issues and calm weather in the Atlantic and Gulf of Mexico encouraged traders to take profits and liquidate long positions ahead of today's inventory reports.
The US Dollar index fell and Treasuries rose on the poor economic data. The Dollar closed just 0.13 points away from a new all-time low, while the Dow, Nasdaq, and S&P remained mixed and near unchanged as worries over weak retail sales forecasts were offset by markedly lower oil and hopes for lower interest rates.
"It has always been my view that cyclical analysis taken as a set increment predictor is useless. However judging what the market actually does versus what the cycle says it should does gives a clear and accurate view of the internal strength or weakness of an entity," says Jim Sinclair of JSMIneset.com.
"Gold has demonstrated outstanding strength and the DSollar has demonstrated outstanding weakness. The hard fundamental factors have been quite positive to gold and horrible to the dollar. The judgment then is Gold Prices are stronger and the dollar is weaker than what one would anticipate. That means buying technically disciplined dips, even intra-day for those wild ones, should be successful.
"I do not anticipate any hard correction here, as if it was to occur, it would have already."
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