19 October 2010
Golds fever breaks as afternoon Gold fix settles at $1,339
Gold corrects as China rate hike lifts battered greenback
p>Golds high fever finally broke today, for now at least, as China raised rates lifting a beleaguered dollar, reducing the appeal of the yellow metal. A correction in Gold was widely expected, and given the recent perfect storm that has driven Gold and Silver ever higher in the past two months, many investors were most likely waiting for a reason to take profits.
What will be interesting is how this correction, the latest in a long line, on Golds ascent over the past 8 years or so, affects buying in the physical markets. Previous corrections of this nature have boosted activity, as investors seek to bargain hunt. We at BullionSupermarket.com think this will likely happen again, based on our traffic and click throughs, which were both up today as some users went bottom fishing for Gold and Silver.
With fixed price stock premiums left aloft by dipping metal prices, the best action will be had in auctioned items and those with make offer available .