Friday, September 9, 2011

Market is “Nervous” and “Liquidity Remains Poor”

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DG365FD46564GFH654FU898 Commenting on today’s weakness in gold , TD Securities Global Precious Metals team wrote the following in a note to clients: Gold initially saw some investor buying off $1875 level before meeting some profit taking around $1885 (prev series of tops since we broke back below $1900), heading lower into the AM fix and subsequently dropping back to $1865 as the USD gained ground across the board, EUR selling at the forefront and EM under some pressure. Then another “flash-crash” brought gold down to $1840 in seconds as futures based selling hit the screens – some 6000 lots went through in a hurry dragging the rest of the complex with it, silver is down



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