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Mercantile Exchange Blog |
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Nov 11 2013 |
| Gold's Fall: Markets Reaction! |
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It has been a long
story telling that the crisis has affected the market, both directly and
indirectly. But, look at the post-crisis effects that still has been affecting
the markets and the shocks to the traders have continued. There are still many
correction measures that are being taken to neutralize the effects of crisis
and the effects are still un-anticipated. The stimulus that the Federal Reserve
had taken to neutralize the economic misbehaviors has again persuaded that the
traders take many short positions and this has made the holdings the least in
recent months- not at all good for traders.
According to the
various news sources, the net position in gold has come down by 13 percent and
this has occurred due to the decreased demand. There can be several reasons-
one of them could be that the festive seasons have recently been over and the
pockets of the traders have been in the short-hand. This is why the long
positions have decreased by 4.9 percent and the short positions have jumped off
by almost a 37 percent, very high turnover for the short period of time.
Combined holdings across 18 US-traded commodities have seen a drop by 20
percent.
The fall of the gold is
not common. Experts believe that the tumble of gold by almost a 23 percent in
this year is heading towards the biggest slump in the gold prices since 1981
because the recent trend has been that the traders have started losing faith on
the value of the yellow metal. Because of the recent trends and measures in the
US economy, the economy has started showing some recovery signs but the
unemployment and the traders’ short-fund status are still creating ample problems
to keep the traders’ faith down.
This is a big shock and
there is no option except waiting for the GOOD!
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| Posted by at 11:19:07 AM |
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