Gold has been holding very well up to now but last Friday it sold off a little bit. May be the beginning of a correction. I can see the headlines, gold traders sell gold to raise cash to cover margin calls in other positions.
Whatever. We won't be standing pretty much longer.
(Corrects company name in eighth paragraph.) Gold dropped to a three-week low on sales by some investors to cover losses in equity markets. The MSCI All-Country World Index of stocks touched the lowest in more than two months. The Standard & Poor’s 500 Index has fallen for six straight weeks. Gold reached a record $1,577.40 an ounce on May 2. “Gold may tumble if margin-call problems should arise in equities here and abroad,” said Dennis Gartman, an economist and the editor of the Suffolk, Virginia-based Gartman Letter. On the Comex in New York, gold futures for August delivery fell $13.60, or 0.9 percent, to settle at $1,515.60 at 1:53 p.m. Earlier, the price touched $1,511.40, the lowest for a most- active contract since May 23.
"Gold has been holding very well up to now but last Friday it sold off a little bit. May be the beginning of a correction. I can see the headlines, gold traders sell gold to raise cash to cover margin calls in other positions."
Every now and then, you get an intelligent post on this board. That is the exact reason that GLD could sell off. If the markets tank this week, people will sell everything to cover margin calls.
Cortez on Fastmoney says it will be down big also. Basically a global margin call. Gold and all the high flying stocks will crash as people try to increase liquidity. Cortez says gold could crash down to $1200 while other experts say even a test of $1000 is possible.