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Gold Prices Plummet Due To Possible Stabilization Of Markets

August 26, 2011 by  

BNP Paribas analysts have noted that although the metal is returning to moderating prices for the moment, they still expect gold to reach $2,080 a troy ounce in 2012.The price of gold dropped significantly as the precious metal extended its biggest slump in 18 months following decreased demand from investors due to increased margins and news of a slight economic recovery, Bloomberg reported.

Prices for gold fell 3.1 percent as the metal recorded a three-day loss of more than 10 percent, the most it has fallen since 2008, according to the news outlet.

BNP Paribas analysts have noted that although the metal is returning to moderating prices for the moment, they still expect gold to reach $2,080 a troy ounce in 2012, reported Dow Jones Newswires.

Margin requirements for the precious metal were raised to curb the rising price of gold following the record levels that were reached, as the rates were hiked 27 percent, The Street reported.

 

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  • http://LibertyAlert Bud

    As soon as Obozo and Bernanke are gone, the price of gold will fall and the market will increase in value.

  • James A. Olson

    “Stabilization Of Markets”? What dream world is this author living in? Or is this another, “Better living through drugs” sort of thing?

  • http://www.easyinvest.co.za peter

    Stabilization? Some more of the same. Must we believe that we are on the road to recovery? Can we be serious for a change and face the facts – we are going nowhere on this route, we need to take another road, but first we need to make a plan and stick to it. That of course is something no politician ever did or ever will do. Keep doing the same thing and we will get the same results. Wait and see where we are with this “recovery nonsense” one year down the line.

    Obama cannot be woken up and neither can Bernanke. They are brain damaged from looking in the mirror too much and are now beyond any sort of objective thinking. They need to go…….in a hurry!

  • James

    That’s nonsense. Gold increases in price because of built-in inflation in our financial system. It’s price collaapsed from $1904 to $1704 per ounce because it went up too far too fast. It will continue to go up as long as the feds keep pumping more paper moneyinto the economy. They do that to keep house prices from falling any further, which prevents banks from foreclosing on them, they’re under water.

  • Bob L.

    I don’t think the drop in the price of gold is nearly as much market driven as it is manipulation driven – again.

    The government “watchdog” agency over commodities along with Geithner, Bernanke, and their international central banking friends in New York have taken actions, behind the scenes in the recent past that were nothing short of manipulation. Let’s see if some more 90%gold bricks show up on the market like happened a couple of years ago in London. Under FDR, the mints were melting down U.S. gold coins so fast, they didn’t bother to re-refine a lot of the gold and just cast ingots of 90% gold.

    Why would they try to hold the price of gold (and silver) down? To help conceal just how worthless the fiat dollar has become and is continuing to drop in “value”. Money creation is still going on at an obscene rate. The price of groceries is not going up because of greedy people in the supply and distribution chain, it is because the price of everything it takes to produce, transport, and market our food is going up – the more dollars in circulation, the more of them takes to pay the bills. Zimbabwe has 100 TRILLION dollar bills that won’t buy you a meal. In 1924, a postage stamp cost billions of Marks. Why? Fiat money creation that resulted in hyperinflation.
    “Hyperinflation of the Weimar Republic in 1923 Germany”
    http://www.usagold.com/germannightmare.html

  • Another Voice

    I don’t think that the gold bubble has burst completely. But it wouldn’t be a bad idea to start selling some of your stash now.

  • ONTIME

    Stabilization of markets? Are you kidding with all the bad paper and debiture that cannot be met, why do you think those nations that can afford it are stocking up on gold, do you think they are expecting the bottom to suddenly fall? Like a fat rat’s ankle.

    Whatever market influence there is on gold at present is only temporary.. we still have Fannie Mae and Freddie Mac to make good on and that is not going to happen.

  • Wamiman

    The four day drop in gold price is just an indicator of profit taking. As of today, the trend has again rising within the trend limits. Investors in gold will see prices exceeding $2100/toz. Other markets are unstable and give no confidence for growth. Look forward for important announcements on http://www.wam-global.com

  • Agata Valentina

    So much for the dull play, Waiting For Bernanke. Now back to business. Real business.

    As investors, we have to look at the long side, sure, but there is plenty of money to be made going short.

    How to stay on the right side of this fairly volatile market in gold?

    Been using this to keep steady – I am recommending this small, stellar primarily technical analysis company: http://ow.ly/69JZ1

    Be sure to try the free subscription. It actually is free and they don’t bug you. Nothing to lose. I’m just saying, Gary Wagner of the Gold Forecast is shockingly accurate. It is truly uncanny.

  • Geronimo

    I’m getting my gold the old fashioned way. I’m taking my pan,sluce box and metal detector and heading for the nether boondocks.

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