Gold Prices

Although the current price of gold now stands at close to $1,400 per ounce, its seems to be slowing down. This causes a bit of short selling by those who are out to make a quick gain. Even the long term holders of gold coins are getting some jitters over the slight fluctuation of gold prices, no thanks to the Feds.

Market Trend Uncertainty

However, this may seem to be the market trend today. Gold prices are quite volatile albeit in small quantum but that is enough to trigger off the panic button on many people, especially the technologically advanced experts who are dependent on the machine to figure out the next step. For instance, a slight price dip in gold was supposed to alleviate fears on the European credit concerns but instead spiked the equity markets quickly; this in turn affected the gold prices further. The Euro rose from this incident taking away the frowns of anxiety on minor investors’ faces. But by midday, the Euro fell again with the equities.

However, gold is still quite stable throughout such stock market fluctuations as the bullion bank has already placed a cap on the gold prices to generate a sell mode. Gold is expected to rise in price with the Euro’s fall.

Keeping a sound mind
It would look like the problems which besiege Europe will be around for some time yet although they may not be uppermost on most traders’ minds. Investors should learn to be more stable minded about the market’s fluctuating conditions since no firm foundations have ever been accounted for them. The only outcome from such market fluctuations is opportunities created for the sound minded to capitalize on the situation through calm analysis.

All eyes are on the gold price movement; all are curious to check if it will go beyond 1,000 Euro. It is very disturbing to note that the Euro is unable to hold steady for a whole day, reflecting the attitude of sellers out to make a fast buck. With such unsteadiness, the Euro will probably end up at 12100 very quickly although that is still higher than the previous figure in 2008.

Current market

The monthly chart is claiming a low support of gold until the Euro moves below 119which will really be a great concern. It is most likely that the 20 day moving average would be exercised since the current 10 day moving average was not sustainable even when on a rise. The index is required to move back close to 487 instead of moving down to 460.