11 Oct 2013
Gold plunges to 3-month depths
FXstreet.com (Chicago) – Gold lost 2.06% throughout the day printing lows at $1,259.60 and highs at $1,294.80 to now be offered at $1,270.20 amid hopeful reactions among market participants on potential US shutdown finale after reds and blues agree on the republicans’s proposal.
Metals recap
Silver followed down 2.72% registering lows at $20.95 and highs at $21.86 to now trade at $21.31. Platinum also marked losses with a 1.65% retracement registering lows at $1,362.50 and highs at $1,391.70. On the other hand, copped advanced 0.74% and trades at $3.2720 with lows at $3.4450 and highs at $3.2740. Palladium is also up 0.07% and trades at $713.05 registering lows at $707.10 and highs at $716.95.
US shutdown – no default?
After republicans presented a proposal for the short-term debt limit and president Obama rejected it, another proposal came to life today and this time, with narrowed demands. It seems both parties are giving in to inflexible positions as the debt ceiling approaches and a debt default could generate chaos throughout the world. Republican representative, Peter Roskman, said “the House has demonstrated an incredible amount of flexibility” adding “that the notion of not negotiating is actually untenable”. The White House responded to the proposal saying the action taken was appreciated but democrats seem unsure about the purpose of a six-week debt extension as no solution would actually take place with more time stating “a proposal that puts a six-week debt ceiling would put us back to same position in six weeks”.
Gold – Technical Levels
James Chen, Chief Technical Strategist at City Index Group noted “Gold (daily chart) has extended its decline slightly below key support around the 1265 level, establishing a new three-month low in the process. In doing so, the precious metal has also fallen below the 61.8% Fibonacci retracement of the rebound from the June 1180 multi-year low up to the August 1433 high. The continued decline that has been in place for the past month and a half has followed a well-formed downtrend line that outlines a strong potential for gold to continue the overall bearish trend that has been in place since the October 2012 highs near 1800.”
Metals recap
Silver followed down 2.72% registering lows at $20.95 and highs at $21.86 to now trade at $21.31. Platinum also marked losses with a 1.65% retracement registering lows at $1,362.50 and highs at $1,391.70. On the other hand, copped advanced 0.74% and trades at $3.2720 with lows at $3.4450 and highs at $3.2740. Palladium is also up 0.07% and trades at $713.05 registering lows at $707.10 and highs at $716.95.
US shutdown – no default?
After republicans presented a proposal for the short-term debt limit and president Obama rejected it, another proposal came to life today and this time, with narrowed demands. It seems both parties are giving in to inflexible positions as the debt ceiling approaches and a debt default could generate chaos throughout the world. Republican representative, Peter Roskman, said “the House has demonstrated an incredible amount of flexibility” adding “that the notion of not negotiating is actually untenable”. The White House responded to the proposal saying the action taken was appreciated but democrats seem unsure about the purpose of a six-week debt extension as no solution would actually take place with more time stating “a proposal that puts a six-week debt ceiling would put us back to same position in six weeks”.
Gold – Technical Levels
James Chen, Chief Technical Strategist at City Index Group noted “Gold (daily chart) has extended its decline slightly below key support around the 1265 level, establishing a new three-month low in the process. In doing so, the precious metal has also fallen below the 61.8% Fibonacci retracement of the rebound from the June 1180 multi-year low up to the August 1433 high. The continued decline that has been in place for the past month and a half has followed a well-formed downtrend line that outlines a strong potential for gold to continue the overall bearish trend that has been in place since the October 2012 highs near 1800.”