The gold correction in August ended

The gold correction in August ended

Spot gold is again trading above $ 1,800 an ounce after massive sales last week that saw gold fall more than $ 200 from its record $ 1,913 to an intermediate low of $ 1702. This August 11% gold correction did not break the upward channel in gold prices. He didn’t even return us the maximum of $ 1663 per ounce of July.

Some traders expected the increase in margin requirements for gold futures to lower gold as much as with silver in May this year, but were disappointed because demand for gold was very strong even when it fell. The price of silver has been able to rise slightly in recent months and is on track to reach its record price of $ 50 per ounce. But given the previous volatility, traders are still wary of silver.

At Ben Bernanke’s last meeting in Jackson Hole, he did not openly confirm the Fed’s intentions to continue printing money (QE3) to stimulate the economy, saying only that the Fed has “other tools” it can use to revive the economy.

As previously reported, the Fed will continue its zero interest rate policy for the next two years, although typically such measures have been implemented as a forced short-term solution because it inherently leads to inflationary processes and is now designed for a long-term one. , which cannot pass without consequences. In addition to all this, the Japanese government also intends to participate in currency wars, with the intention of weakening the yen, which will likely lead to its depreciation. The same should be expected of another previously safe currency: the Swiss franc, which has appreciated significantly, and now the Swiss Central Bank is trying to weaken it.

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