Hi all,Just what I've read over the last couple of days but gold...

Hi all,

Just what I've read over the last couple of days but gold being sold off for "riskier" investments such as equities seeing the outlook on the US economy has "improved".

It might be a bit of a tug-o-war between selling to divert money into equities and that other big issue that seems to have been one of the main reasons for gold's stellar rise of late; huge debt/deficit problems the US and Euro zone wont disappear overnight so it remains to be seen what happens to the gold price but there is a good to fair chance it will come back to it's long term support so don't be surprised to see it settle at $1300, even falling as low as $1230/$1250 in the short term.

Drop in price will also stimulate physical buying, many physical buyers of gold are waiting for this sell off in order to buy again so it will be interesting to see what happens.

This post not meant to alarm anyone, I only posted this as this could see some increased selling in gold stocks in next week, I wouldn't go as far as saying it will be panic selling but it might lead to some buying opportunities for we SBL holders. Always good to have some perspective should it happen, hopefully I'm way off the mark :)

Even at $1200 the margins are still healthy so keep that in mind too.

Just something to consider over the next couple of weeks.

Gold falls below key moving average

.David Pett January 6, 2011 11:19 am

Golds bad week is getting worse on Thursday with the price for yellow metal falling another US$10 and looking poised to close below its 55-day moving average for the first time since August.

Now down 3.6% this week, gold hit US$1368 an ounce in mid-morning trading, almost $9 lower than the present 55 MA of US$1377 an ounce.

Ashraf Laidi, chief market strategist at CMC Markets said gold has tested this trend measure 5 times over the last 5 months but succeeded in holding above it in each time.

A close below the 55 MA Thursday would run the risk of extending losses towards $1320, he said.

With US non farm payrolls increasingly expected to show a payback blow out figure of above 250K, the yields implications for metals may be sobering for the time being, he added.

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