Major U.S. gold and gold coin dealer, Blanchard & Co. reckons that investors are yet again finding themselves entering a new year amid uncertainty, with the debt ceiling, taxes and government spending all playing a role in shaping the 2013 economy. Legislators walked the fiscal cliff tightrope until the 11th hour at the end of 2012, and something few expected happened in the financial market – gold declined in price.
Blanchard analysts – while surprised – say the counterintuitive downturn in gold’s price when it should have moved upward is the result of investors and consumers keeping their money in their pockets – just like most major banks. This may well be a more cautious view on what has happened to gold – to this observer the timings of the actual downward movements in the gold price, just when it seems like it is about to break out of the current trading range, and almost on a daily basis, does suggest an organised market attack on the yellow metal designed to keep the price firmly within limits. The tendency of the markets seems to be to move upwards again following these manufactured dips and one wonders how what looks to be some kind of suppression scheme can go on before it falters and collapses – It could be days, weeks, or even months, but recent price movement patterns do suggest there is a likely breakout ahead,
Blanchard analysts thus add that these current price dips present a good buying opportunity for people looking to enter the market or for adding to existing long positions as the upside potential for strong gains is fundamentally intact.