Firms have raised margins on gold accounts. If they exchanges begin to do this, it will probably go lower. The short term oversold support number is 1780.00 and after that, a big support level is 1650.00. Raising margins means, institutions or traders or whoever plays in the gold market, is required more capital to invest than previously required. We trade on a percentage of the contract so if someone is required more money, they may close their long position in gold (this means they sell out of their shares that they own.) Also, treasuries accross the world bought gold at you know, like, 1100, 1200... they are going to be required to put more margin up to, and any country that needs short term money will sell out of their inventory for a minor profit.. Ultiimately gold will go back up to 1900 maybe even 2000... but we could see some serious downside before we go there. hang on to real gold and buy gold PUT options!
No comments:
Post a Comment