16 Oct 2013
Oil prices consolidate, gold tumbles despite uncertainty sparks volatility
FXstreet.com (Athens) – Oil is almost unchanged on Wednesday, while gold is moving sharply downwards the last hour, despite heightened uncertainty due to an absent US fiscal deal.
Oil prices move slightly downwards the last couple of hours but mainly consolidate around $101.00 area, while gold is tumbling across the board putting “riddles” to market participants who might expect that gold prices would soar amidst the ongoing fiscal impasse in Washington. Briefly, gold is moving down 0.04% at $1280.85. The price of gold was as of $1418 on late August but now amidst a looming US debt-default price of gold is at $1280/ounce, almost a 10% drop. Traders should look behind the curtains to find the reason for which gold lost its safe haven appeal the recent weeks, but mostly should look upon what might happen if US politicians find a solution on the budget impasse even at the 12th hour. Briefly, Goldman Sachs called gold a “slam dunk” sell in case Washington reaches an agreement, forecasting that in such a case gold price would finally touch levels just above $1000/ounce.
Oil prices move slightly downwards the last couple of hours but mainly consolidate around $101.00 area, while gold is tumbling across the board putting “riddles” to market participants who might expect that gold prices would soar amidst the ongoing fiscal impasse in Washington. Briefly, gold is moving down 0.04% at $1280.85. The price of gold was as of $1418 on late August but now amidst a looming US debt-default price of gold is at $1280/ounce, almost a 10% drop. Traders should look behind the curtains to find the reason for which gold lost its safe haven appeal the recent weeks, but mostly should look upon what might happen if US politicians find a solution on the budget impasse even at the 12th hour. Briefly, Goldman Sachs called gold a “slam dunk” sell in case Washington reaches an agreement, forecasting that in such a case gold price would finally touch levels just above $1000/ounce.