The low of $1,699.65/oz seen two days ago on Wednesday may mark the intermediate low. However gold could continue falling until Oct. 31 as month ends often mark intermediate lows or could even continue falling until the US election or soon after.
The midweek precious metals trading session started with a bit of a recovery effort following Tuesday’s price rout. Market participants pushed the US dollar a tad lower on the index and lifted gold prices by about half a percent.
Friday’s EU news lifted gold prices in a hurry but it appears that the $1,600 resistance level proved to be…resistant to further assaults for the time being. The yellow metal started the abbreviated trading week in profit-raking mode as did the rest of the precious metals’ complex.
The gold-mining industry has made impressive strides since its 2008 production low. In the last few years mine output has surged. And in taking a closer look into this major supply source, we find some fascinating country-level developments.
It only took eleven years, but in 2011 global gold-mine production has finally returned to pre-bull levels. With 2011’s volume expected to come in at around 88 million ounces, we’ll see a new all-time production high.
As 2011 comes to a close, investors reflect on one of the most tumultuous years in market history. Though stocks were flat on the year, those who've had skin in the game probably feel like they just stepped out of a barrel that went over Niagara Falls.