Courtesy of Bloomberg, I have just found out that gold dropped in Asia, getting set for a pull back maybe, before another round up.
The article follows:
” Nov. 10 (Bloomberg) — Gold declined for the first time in three days in Asia as the dollar rebounded and some investors sold the metal to lock in gains after its rally to a record.
Spot gold hit a peak of $1,111.20 an ounce yesterday, lifting its 14-day relative strength index, a gauge of whether a commodity is poised to decline or gain, to more than 70, a level viewed by some investors as a signal of an impending retreat.
“Gold holds a tendency to trade near round numbers, August was around $950, September near $1,000, and October near $1,050, before resolving higher,” Barclays Capital strategists led by Jordan Kotick, wrote in a note e-mailed today. “We expect the market to trade around $1,100 for a few days before a run at $1,150 into month-end.”
Immediate delivery bullion fell as much as 0.5 percent to $1,098.60 an ounce, and traded at $1,099 at 1:53 p.m. Singapore time. December-delivery gold on the Comex division of the New York Mercantile Exchange fell as much as 0.3 percent to $1,098.50 an ounce after yesterday reaching a record $1,111.70.
“Gold is looking a little overbought at the moment and we might see a little correction before the buying momentum takes it higher again,” said He Ruiyan, head of research at Xiamen International Trade Futures Co.
The dollar rose against a basket of six major currencies including the euro and yen as investors moved before a U.S. public holiday tomorrow to pare back bets the greenback will slide. Still, gold is up 25 percent this year, heading for a ninth annual gain, the longest winning streak since at least 1948, as the dollar index tumbled 7.6 percent.
“The key issue is the dollar but if you look at the G-20 announcement, you could make a point that it’s not just the dollar, it’s actually the yen, the euro and the dollar which are looking very weak versus the rest of the world,” Juerg Kiener, chief investment officer at Swiss Asia Capital Ltd., said in a Bloomberg Television interview today.
The Group of 20 governments agreed over the weekend to keep stimulus measures and remained silent on the greenback’s decline this year, fueled by record low U.S. interest rates.
Among other precious metals for immediate delivery, silver slid 0.9 percent to $17.4250 an ounce, platinum fell 0.4 percent to $1,353 an ounce, while palladium declined 0.7 percent to $331.50 an ounce as of 1:57 p.m. in Singapore. ”
Interesting to be noted is the next level, estimated to reach $1,150 by the end of November.
I have on my watch list two securities: Centamin Egypt (CEE.TO) and West Timmins (WTM.TO). Considering that Wednesday is Remembrance Day and the TSX will be closed, I would wait until Thursday to see how the game unfolds.