Gold took a serious tumble today, a day filled with news releases regarding Europe’s LTRO (long-term refinancing operations), and commentaries from Bank of England Governor Sir Mervyn King and Fed Chairman Ben Bernanke.
There were other forces at work as well. The European Central Bank sold 7.6 tons of gold last week, very likely as part of a fund-raising move to meet its share of the Greek bail-out contributions. Many hedge funds sold off as well, in order to cover their losses in equity markets.
There is also a rumor that the Chicago Mercantile Exchange will again raise its margin requirements for the precious metal, as they did back in August. Larger margins, of course, mean holders of gold contracts must either make additional deposits on their accounts, or sell off some positions.
So does all this pressure mean our rally is over?
Not necessarily.
Full article + chart available at ---> http://j.mp/ywDRT7
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