Top

gold-bullion

Gold Prices Monitoring Chino-Russian Friendship

Gold prices have been orbiting the US$1,300 an ounce psychological threshold for a little over a month now. From support to resistance, this mark seems to be forming into an unstable balance point. But is that good for the market?

In contrast to what was happening during the same period last year when prices were moving feverishly up and down between $1,350 and 1,500 an ounce, in the past few weeks the price chart has fallen flat as the proverbial pancake. From violently reacting to every intentionally spread rumour that had no justification whatsoever, money managers have come to disregard facts and events that are of vital economic significance to the global economy.

Before we delve into the facts, and discuss alliances of a serious geopolitical conflict in the heart of Europe, you have to understand why a stagnant gold market is a seriously endangered market. To begin with, a motionless market attracts few, if any, new investors. To start an investment in gold bullion, people have to be motivated by a lively market, a market that feels the heartbeat of the economy, and responds to supply and demand rules.

Prices remaining stationary for a long period of time does not mean that supply perfectly meets demand (as this is impossible), but rather indicates lack of interest in buying and selling gold as investors have no incentive such as lower prices and a good perspective for buyers or flying prices in an overvalued market for sellers. Let it be noted that prices reached a plateau on two occasions last year, both times followed by steep descends, this by no means implies the same will happen this year.

Four points of focus for gold prices

  1. From 22 to 25 May 2014, elections to the European Parliament will be held in the European Union. The citizens of the member states will be called to express their reaction towards the continuing economic crisis in Europe, and at the same time comment on the European Union’s policy towards the feared energy crisis.
  2. Russia’s aggressive policy continues both by maintaining significant military forces in the area, and by appearing indifferent to US sanctions. But Russia is not alone.
  3. China has extended an olive branch to Russia and the two former foes have now reached a synergy – extraordinary for two countries which only 30 years ago had better relations with the United States than they did with each other. In the words of President Putin,”Russia’s positions on the main international issues are similar or even identical to China’s, and it would fair to say that this agreement has reached the highest level in history.” Reading between the lines, this is about Russia selling natural gas to the Chinese.
  4. This last point adds to the US concerns about both their foreign policy and the economic implications of a Chino-Russian alliance.

Gold prices cannot stay where they are for long. With a Cold economic War rumbling, make the best of the bullion offer on coininvestdirect.com and place yourselves firmly in the market.

 

Four points of focus for gold prices

  1. From 22 to 25 May 2014, elections to the European Parliament will be held in the European Union. The citizens of the member states will be called to express their reaction towards the continuing economic crisis in Europe, and at the same time comment on the European Union’s policy towards the feared energy crisis.
  2. Russia’s aggressive policy continues both by maintaining significant military forces in the area, and by appearing indifferent to US sanctions. But now Russia is not alone.
  3. China has extended an olive branch to Russia and the two former foes have now reached a synergy extraordinary for two countries which, only 30 years ago and under communist regimes, had better relations with the United States than they did with each other. In the words of President Putin,” Russia’s positions on the main international issues are similar or even identical to China’s, and it would fair to say that this agreement has reached the highest level in history.”We all know that this is all about Russia selling natural gas to the Chinese.
  4. This last point adds to the US concerns about both their foreign policy, and the economic implications of a Chino-Russian alliance.

Gold prices can’t stay where they are for long with a Cold economic War going on. Make the best of the data and information provided by coininvestdirect.com and place yourselves in the market.

It has been more than a month now that gold prices are moving marginally up and down the $1,300 an ounce point. From support to resistance this mark now seems to be forming into an unstable balance point. But is that good for the market?

In contrast to what was happening during the same period last year when prices were moving feverishly up and down between $1,350 and 1,500 an ounce, in the past few weeks, the price chart is flat as a pancake. From violently reacting to every intentionally and cleverly spread rumour that had no justification whatsoever, gold prices have come to disregard facts and events that are of vital economic significance to global economy.

Gold prices unaffected by world events

Before we go looking into these facts and the new alliances in times of a serious geopolitical crisis in the heart of Europe, we have to understand why a stagnant gold market is a seriously endangered market. To begin with, a motionless market attracts few, if any, new investors. To start an investment in gold bullion, people have to be motivated by a lively market, a market that feels the heartbeat of the economy, and responds to supply and demand rules.

Prices remaining stationary for a long period of time does not mean that supply perfectly meets demand (as this is impossible), but rather indicates lack of interest in buying and selling gold as investors have no incentive such as lower prices and a good perspective for buyers or flying prices in an overvalued market for sellers. Let it be noted that prices reached a plateau on two occasions last year, both times followed by steep descends, this by no means implying that the same might happen this year.

Four points of focus for gold prices

  1. From 22 to 25 May 2014, elections to the European Parliament will be held in the European Union. The citizens of the member states will be called to express their reaction towards the continuing economic crisis in Europe, and at the same time comment on the European Union’s policy towards the feared energy crisis.
  2. Russia’s aggressive policy continues both by maintaining significant military forces in the area, and by appearing indifferent to US sanctions. But now Russia is not alone.
  3. China has extended an olive branch to Russia and the two former foes have now reached a synergy extraordinary for two countries which, only 30 years ago and under communist regimes, had better relations with the United States than they did with each other. In the words of President Putin,” Russia’s positions on the main international issues are similar or even identical to China’s, and it would fair to say that this agreement has reached the highest level in history.”We all know that this is all about Russia selling natural gas to the Chinese.
  4. This last point adds to the US concerns about both their foreign policy, and the economic implications of a Chino-Russian alliance.

Gold prices can’t stay where they are for long with a Cold economic War going on. Make the best of the data and information provided by coininvestdirect.com and place yourselves in the market.

, , , , , , , ,

Comments are closed.
Web Analytics

Clicky