Once again, after two weeks apart (since my last commentary on 16th of September), I am happy to meet with all of you once again. Welcome to another edition of the “Second Opinion” GOLD Commentary.
Overall, I will inform you about the current situation relative to the market news in the past two weeks so that you can catch up with updates. As always, in my humble opinion, I will also try to explain the developments surrounding GOLD and what may be headed our way in order to guess the likely hood of events in the future bar unexpected cosmic occurrences or force majeure. Please keep in mind that my usual principle is to discuss possible outcomes from a broader perspective rather than a short view timeline despite covering shorter period of market news and data. In this edition of the commentary, the topic is titled “Excuses to Blame” because we had the chance to witness especially how investors in US markets got jittery feelings on the turn of a general positive mood to negative by seeking an excuse for profit taking for the rallies recorded in various markets recently. There were several reasons for the markets to pull back and cause sharp declines in markets in the past two weeks. The main reason for profit taking last week was sparked after the unexplainable sharp price drop in oil market. Moving on to this week, investors had several other reasons such as the risks associated with EU Zone economic growth including questionable viability of Spanish government latest announcements or the fact of growing tensions between Japan and China over disputed islands or President of the Philadelphia Fed Bank, Charles Plosser’s suggestion that recently deployed “Quantitative Easing (QE-3)” was unlikely to boost economic growth or help the struggling labor market. The majority of all investors are adults and professionals so they should not need to hide behind any excuses for legal and logical market activities like profit taking purposes but when you add up all the reasons mentioned above then nothing constitutes better excuses to blame for profit taking.
For those of you who joined in recently or perhaps here to read it for the first time, I must remind you that my commentaries only require a “light reading”, I absolutely try to refrain from using any technical graphs or data analysis, complicated and perhaps confusing financial terms (unless absolutely necessary) since these commentaries are intended for the common crowd in general. Besides those of you who require such detailed information, you may all get them from your various sources including investment or banking institutions filled with professional advisors with financial backgrounds at any given time so I do not frankly see the point to put them here again unless requested otherwise from readers like yourselves specifically.
I hope you all enjoy this edition of the commentary below. Thank you.
Stay with Gold to live Golden days,
a.k.a. Aurum Rookie
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