Gold Market “Still in Shock” But Selloff “Excessive Given Long Run Value of Dollar” – 17 April 2013

Gold market update for Wednesday, April 17th: Gold was slightly up Wednesday morning in London trading, but still languished in the $1380 per ounce range. One London-based trader commented the market is “…still in shock” after the metal’s large declines. According to another analyst at UBS, gold has been pretty battered and that the drop was pretty excessive considering the fundamentals. Gold ETFs still saw net outflows on Tuesday/Wednesday, but physical buying is picking up some of that slack. Also, Cyprus announced it will be selling some of its gold reserves over the next few months as part of a new bailout agreement with the European Union. Read more…