21 June 2010
2% Decline in Gold Prices shows Bullion can still surprise
"Surprise" 2% decline in Gold Prices shows Bullion can bite the unwary
A 2% downward correction in the Gold prices this afternoon showed that after almost 3 weeks of daily increases, on a day when the news of Yuan devaluation should have helped the Gold market, bullion can still surprise the un-wary.
Bullionsupermarket.com users however appeared in retrospect to be anything but surprised, the previous week registering significantly below (30% below) the average number of price comparisons in both Gold and Silver as physical buyers held back to see if record gold prices stuck.
With the summer months of June, July and August being typically weak months for gold, and with gold stocks trading below the highs of December 2009 and March 2008, and Gold's recent peaks not matched by silver, the risk of a further correction is significant.