Gold's 20-day moving average falling below its 200-day and its brief foray into a bear market suggest momentum has turned bearish and a further pullback could be on its way. Bullion's 20-day moving average dipped below its 200 DMA on Thursday, in what technical analysts termed a "death cross," as the short-term momentum has turned more negative than long-term trend. That could show that the current downtrend is pervasive. "Any time there is a death cross, the market is telling us that the underlying strength has changed from bullish to bearish," said Adam Sarhan, chief executive of Sarhan Capital. Sarhan compared gold's technical charts in December to a slow-motion train wreck, with the metal having plunged below its long-term upward trendline for the first time in three years and its key 200 DMA. "When you start seeing a lot more bearish technical events occurring, more and more shorter-term traders are inclined to selling their positions," Sarhan said. Bullion has ended the … [Read more...] about Gold’s “death cross” signals more losses coming
Gold 30 year chart
Weak manufacturing data out of China was the latest bad news to wreak havoc in financial markets this week. The devaluation of the yuan last week sparked global growth concerns that hit almost every global asset class, finally reaching what had until now been a bastion of stability: the S&P 500 One currency investor calls it "a race to the bottom." First China, then Vietnam, then Kazakhstan removed their pegs, exacerbating a rout in emerging-market currencies to reach record lows. Malaysia’s ringgit weakened to a 17-year low, the worst developing-nation performance this month after Russia’s ruble. Colombia, where oil is the biggest export, also saw its peso weaken to an all-time low. … [Read more...] about These charts show how hard China has hit global markets
If Vietnam can achieve macroeconomic stability and foster an increasingly better business environment, the craze for dollars and gold will vanish Dollars and gold have been in the spotlight recently as their prices are alarmingly volatile. Some argue that eradicating the illegal trade in these two commodities will help to improve the macroeconomic climate. However, fluctuations in dollar and gold prices are the effect, rather than the cause, of macroeconomic instability. Even if, by magic, dollars and gold were to vanish entirely from Vietnam, the country's economic woes would still remain in view of several entrenched problems. Ordinary Vietnamese would continue to hunt for commodities whose value is largely immune to inflation. The key challenge, therefore, lies in stabilizing macroeconomic fundamentals. Where are the dollars? Foreign deposit balances stood at US$27 billion in late 2010, or 25% of the capital raised by the banking sector in Vietnam. This marked a … [Read more...] about What If Dollars And Gold Were Gone?
Govt inspectorate: Violations found at PVC's projects PetroVietnam Construction Joint Stock Corporation (PVC) committed many violations in the projects which it carried out as a contractor, the Government Inspectorate told a press briefing late last week. Local media quoted Ngo Van Khanh, deputy head of the Government Inspectorate, as saying that the agency had inspected Vietnam National Oil and Gas Group but the large number of units under its umbrella made it impossible to do a thourough inspection. Violations of PVC during the time Trinh Xuan Thanh, who has recently been disqualified as National Assembly deputy, was serving as chairman, took place at abandoned projects like a biofuel plant in Phu Tho Province and Dinh Vu yarn plant in Haiphong City. "This is an extraordinary inspection, but the final conclusion is not available yet," Khanh said. Therefore, violations at PVC are not only related to losses of over VND3.3 trillion. Khanh added the Government Inspectorate will report … [Read more...] about BUSINESS IN BRIEF 30/7
Gold held steady on Wednesday, fairly close to recent 11 week highs and taking a cue from the euro's run to a two month peak as investors bet that Greece would finally secure a second bailout needed to avoid default. Receding risk aversion - reflected in rising share prices - is seen as a dampening factor for gold's safe-haven credentials, with German government bonds feeling some pressure. But wider uncertainty on the euro zone's economic outlook was more supportive for gold, with Germany seeing the steepest drop in exports for nearly three years in December and the Bank of France saying its economy would not grow at all in the first quarter of 2012. Simon Weeks, head of precious metals at Scotiamocatta, said bullion seemed to be caught in an identity crisis. "It seems that gold has gone up as a commodity along with equities and other commodities, rather than anything else. The same people who bought it after the Fed news seem to be the ones that bought it yesterday...so I'm a … [Read more...] about Gold on solid ground as Greece lifts euro