Thursday, Aug 09, 2007

Again, due to people having to unwind positions, more likely

Reuters: Gold sinks on liquidity fears

Gold ended down more than 2 percent at a one-week low in New York on Thursday as concern over liquidity flared in credit markets and as the unwinding of yen-carry trades led to a sharp surge in the dollar. "A lot of investment funds are in trouble nowadays and if this continues, they would reduce a lot of risk positions, including gold, in their effort to generate some dollars," said Michael Kempinski, senior precious metals trader at Commerzbank. "Physical demand is not strong anymore. There is a risk of downside movement in gold," he added.

Posted by lvmreader @ 09:56 PM (139 views) Add Comment

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