Market Nuggets: Triland: Comex Gold Closes Sharply Lower On Reduced Prospects Of QE3
Wednesday, 4 April
Comex gold finished the pit session sharply lower after the Tuesday-afternoon release of minutes of a March Federal Open Market Committee meeting quashed hopes for a third round of quantitative easing, says Triland Metals. \"The large army of QE3 addicts are now facing the prospect of a period of cold-turkey,\" Triland says. \"The minutes of the latest FOMC meeting implied that the chances of QE3 are even further away than previously thought. Thus gold liquidation (and most commodities and stock markets) continued throughout the day, breaking the key support level at $1,627 and inducing more stop-loss selling. Bounces have been weak and as we approach the psychological $1,600 level, the pressure on the longs increases.\" Comex June gold fell below support around the two-month low of $1,629.80 from March 22, bottoming at $1,613, its weakest level since Jan. 9. Around the time the Comex pit was closing, the contract was down $57.50 to $1,614.50, with much of that loss occurring in after-hours electronic trading Tuesday afternoon.