Buying Opportunity for Spot Gold
February 9th, 2010 Posted in Oil and Precious Metals
Name: Russell
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Spot gold prices rebounded slightly, recovering after the previous week’s significant decline. After the dollar weakened somewhat during Tuesday’s trading session, traders took advantage of the trading environment by going long on spot gold. Some feel the commodity has been oversold due to the steep decline in price over last week and is now ripe for a buying opportunity.
Prices for spot gold were trading slightly higher today, rising to the price of $1073. Currently the price sits just below the key resistance level of $1075.44. During Friday’s trading session, the price of spot gold dropped over 5%.
The price is still considered to be quite high on a historical basis since rising above the $1000 price level in October.
Spot gold was supported by a falling dollar, which allows for the appreciation of commodities that are denominated in dollars. Also spurring buyers was the general feeling in the market that the price fell too fast after Friday’s steep correction. Concerns remain over the fiscal policies of Greece, Spain, and Portugal, that sparked the fallout in spot gold prices as well as other commodities.
Many commodities have been trading in-line with risk recently. The European debt crisis has intensified the risk aversion seen in the market. However, this feeling has eased over the first day of trading in the new week. Spot gold traders may have an opportunity to go long on the commodity.
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Tags: dollar, Gold trading, spot gold price support level, spot gold prices, spot gold trading, spot gold trend line
