Thread: Gold Prices Sank 11% in September

SEPTEMBER 30, 2011, 3:09 P.M. ET.

Gold Prices Sank 11% in September

By TATYANA SHUMSKY

NEW YORK—Gold futures ended slightly higher, putting a happy note to the metal's worst month in three years.

The most active contract, for December delivery, settled up $5.00, or 0.3%, at $1,622.30 a troy ounce on the Comex division of the New York Mercantile Exchange.

The front-month contract, for October delivery, settled up $4.90, or 0.3%, at $1,620.40 a troy ounce.

"Gold is showing us that $1,600 is a very good support level," said Charles Nedoss, a senior market strategist with Olympus Futures. He added that technical traders would be tempted to buy gold if the contract closes above $1,640 in the coming days.

However, gold prices are down 11% in September, their worst decline since October 2008 when prices tumbled about 19% on the month.

Market participants say that much of gold's decline is linked to pervasive fears about Europe's sovereign-debt crisis. Some investors sold gold in September on concern that a Greek default would trigger a cash shortage similar to that seen in 2008. Others, meanwhile, were forced to sell profitable gold holdings to cover steep losses in equities.

Europe's slow progress in tackling its financial problems has also added to pressure on gold prices.

"Markets are hanging onto every development in the euro zone, even though things are moving at a much slower pace than U.S. traders are accustomed to. That explains the volatility in metals prices although it makes things more difficult to interpret," said Tom Pawlicki, precious metals analyst with MF Global.

Write to Tatyana Shumsky at tatyana.shumsky@dowjones.com

http://online.wsj.com/article/SB1000142 ... 38672.html

Yeah, and if I had money four-five years ago I would be rich today,
Like my well to do friends that bought gold four-five years ago!
Anyone that has physical gold is OK for a while. IMO