Gold Drifts Lower in Quiet Trade
Gold prices drifted lower today in quiet trade as stocks were quiet, crude oil fell and the dollar index rose.
The gold bulls have not shown much follow through at all to last Friday's rally and time is running out for them to get additional momentum going. The longer gold lingers here, the more likely that the bears will once again reassert control of the market. Gold is still in the midst of a downtrend, and the bulls have a great deal to prove to attract more buying interest.
Higher equities, falling oil and a stronger greenback continue to weigh on gold prices. These trends may potentially continue leaving one to wonder what might possibly drive the price of gold higher.
Although gold has not had much to cheer about recently, there have been some signs of life in the last several days. Demand for physical gold and silver seems to have picked up over the last week or so. Investor demand for gold at what some consider to be relatively low prices could potentially halt the slide in gold prices. On the other hand, should investors feel that further downside in the yellow metal is likely, then demand at current prices could fall off in anticipation of even lower prices to come.
It is also plausible that the gold market moves sideways here as investors take a wait and see approach on the equities market. Should equities continue to show further strength, then gold will likely come under renewed pressure.
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13 Nov 2014 | Categories: Gold