Friday, November 18, 2011

Gold Stock looks very attractive for change

Gold Stock looks very attractive for change becuse the gold prices rally in stock market since August. After becoming too hot in July and early August, fell $ 340 per ounce to a low of $ 1,592 at the end of September. In one brief period in September, it fell $ 214 per ounce in just four days. 

However, much of gold’s problem in August and September seems to have been the result not only of its overbought condition, but of the CME Group raising its margin requirements for holding gold contracts, by 22% in August, and another 21% in September. The higher margin requirements forced traders to either come up with more cash to hold their positions or cut back on holdings.

Labels: ,