For the first time in three weeks we’ve witnessed gold redemptions in the ETF shares. This corresponds with the sell signal given by the technical traders Wednesday, when the RSI number broke 80 indicating the gold market was overbought. Wall Street Spec. traders jumped on the band wagon and put pressure on the price of gold as it approached the $1,200 dollar level.
Janet Yellen in the news this morning with testimony before Congress at 10 a.m. ET. Some comments on her prepared speech before the House Committee on Financial Services were released this morning. She says, “Tightening financial conditions driven by falling stock prices, uncertainty over China and a global reassessment of credit risk could throw the U.S. economy off track from otherwise solid course.” Right after this comment was released gold traded up $8 dollars.
The Dollar Index trading above the 96 handle this morning keeping gold in negative territory.
Author Name: Walter Pehowich
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