Source: Canaccord Research
October 11, 2011
October 10, 2011
Gold Price Set to Drop into Aggressive Accumulation Zone
On gold's 4-month chart it is now apparent that a bear Pennant has been forming since the panic bottom, with the weak upside volume portending an imminent breakdown and steep drop. A reader pointed out to me during last week that gold's panic lows occurred in thin trading on the Hong Kong market, and for this reason we do not have to factor in the tail of the hammer candlestick when deciding where to draw the boundaries of the Pennant.
Gold Price Set to Drop into Aggressive Accumulation Zone
_______________________________________
The measuring implications of this Pennant call for a drop at least to the vicinity of the intraday lows of the Reversal Hammer and possibly somewhat lower towards the $1520 area - at this point the decline should have completely run its course and we will be looking to buy aggressively.If we look carefully we can see that a small "bearish engulfing pattern" has formed in gold over the past 2 trading days, implying that breakdown from the Pennant and the expected steep drop that will follow is imminent. A reason why this next drop should end the decline is that gold is already deeply oversold as shown by its MACD indicator, and it will of course be even more so after this impending decline.
Those interested in going long gold investments in the near future should "keep their powder dry" but stand ready to wade in big time if gold drops into the bright green "aggressive accumulation zone" shown on our chart.
Gold Price Set to Drop into Aggressive Accumulation Zone
Check it out on The MasterCharts
Switzerland`s Scoach first to allow gold currency derivative trade - FAST NEWS | Mineweb
Tags:
Gold,
mining stocks,
News
As of Monday, Scoach became the first exchange in the world to allow trading in gold-denominated structured products and might also allow exchange traded funds, with gold as the trading currency.
Author: By Martin de Sa'Pinto (Reuters)
Posted: Monday , 10 Oct 2011
ZURICH (REUTERS) -
Swiss structured products exchange Scoach has become the world's first exchange to allow trading in gold-denominated structured products and might also allow exchange traded funds (ETFs) with gold as the trading currency.
Structured products priced in gold, with the international currency code XAU, could previously only be traded over the counter, making them generally less liquid and prices less visible than for products traded on an exchange.
"As of today, issuers can list structured products in gold and trade them in XAU," said Scoach spokesman Stephan Meier.
"There were already structured products denominated in XAU, but previously you couldn't trade them on an exchange."
Scoach, a joint venture between Switzerland's SIX Group and Deutsche Boerse (DB1Gn.DE: Quote), teamed up with EFG Financial Products, the structured products arm of the Swiss private bank, to launch the new structured Products.
"In times of world uncertainty in relation to currencies, gold is a valid alternative. So it is only consistent to offer gold as a trading currency as well," said Christian Reuss, Chief Executive of Scoach Switzerland in a statement.
To invest in XAU-denominated structured products, investors will either need to have a precious metal or gold account, or they can buy the product using francs which their bank will then convert into XAU, Meier said.
"When they sell their products the currency will be XAU. Whether they can cash this in for physical gold will depend from bank to bank," Meier said.
Meier said XAU-denominated ETFs were also a possibility. ETFs -- baskets of securities such as stocks, bonds or commodities -- have attracted floods of money as investors seek cheap, liquid exposure to sometimes hard-to-access asset classes.
Multi-currency ETFs are already listed on the SIX, allowing investors to trade in euros, dollars, yen, francs and other currencies, but there are as yet no products denominated in XAU, Meier said.
"If market participants want to list ETFs denominated in XAU, the international currency code for gold, we could do
that," Meier said.
(Reporting by Martin de Sa'Pinto)
Mineweb.com - The world's premier mining and mining investment website Switzerland`s Scoach first to allow gold currency derivative trade - FAST NEWS | Mineweb
Author: By Martin de Sa'Pinto (Reuters)
Posted: Monday , 10 Oct 2011
ZURICH (REUTERS) -
Swiss structured products exchange Scoach has become the world's first exchange to allow trading in gold-denominated structured products and might also allow exchange traded funds (ETFs) with gold as the trading currency.
Structured products priced in gold, with the international currency code XAU, could previously only be traded over the counter, making them generally less liquid and prices less visible than for products traded on an exchange.
"As of today, issuers can list structured products in gold and trade them in XAU," said Scoach spokesman Stephan Meier.
"There were already structured products denominated in XAU, but previously you couldn't trade them on an exchange."
Scoach, a joint venture between Switzerland's SIX Group and Deutsche Boerse (DB1Gn.DE: Quote), teamed up with EFG Financial Products, the structured products arm of the Swiss private bank, to launch the new structured Products.
"In times of world uncertainty in relation to currencies, gold is a valid alternative. So it is only consistent to offer gold as a trading currency as well," said Christian Reuss, Chief Executive of Scoach Switzerland in a statement.
To invest in XAU-denominated structured products, investors will either need to have a precious metal or gold account, or they can buy the product using francs which their bank will then convert into XAU, Meier said.
"When they sell their products the currency will be XAU. Whether they can cash this in for physical gold will depend from bank to bank," Meier said.
Meier said XAU-denominated ETFs were also a possibility. ETFs -- baskets of securities such as stocks, bonds or commodities -- have attracted floods of money as investors seek cheap, liquid exposure to sometimes hard-to-access asset classes.
Multi-currency ETFs are already listed on the SIX, allowing investors to trade in euros, dollars, yen, francs and other currencies, but there are as yet no products denominated in XAU, Meier said.
"If market participants want to list ETFs denominated in XAU, the international currency code for gold, we could do
that," Meier said.
(Reporting by Martin de Sa'Pinto)
Mineweb.com - The world's premier mining and mining investment website Switzerland`s Scoach first to allow gold currency derivative trade - FAST NEWS | Mineweb
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