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Forex Flash: Gold could fall sharply another $200 - RBS

FXstreet.com (Barcelona) - The fall in gold, according to Greg Gibbs, FX strategist at RBS, appears to strengthen the case for a developing mid-term bearish trend, which had its onset October last year.

Greg notes: "Gold is around its lows in around mid-2012, late-2011, and a peak in April-2011 just ahead of the 2011 phase of the Euro crisis. A break below this zone will signal to technical analysts that it is in the process of unwinding a long rising trend that began over a decade ago, and perhaps could fall sharply, initially by around $200 before encountering significant support. Such a move, were it to occur, is unlikely without a broad significant gain in the USD against other currencies.

Commodities Brief: Gold to fresh 10-month lows sub $1550

Gold is currently trading at fresh 10-month lows $1542 in the spot market, catching up with latest Silver selling off, and back to its natural inverse correlation with USD. The precious metal is down -3.2% for the week so far, one of the worst weeks in last months. Gold-Silver ratio jumped yesterday to fresh 8-month highs shy of the 59 mark, but it has eased today to 57.7 as Gold played catch up with Silver.
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Forex Flash: Today’s Aussie data reduces pressure on RBA to cut again – NAB

With today's +1.3% monthly increase in February for retail sales in Australia, best figure since early 2010, and first time since 2007 that it comes above 1% for second consecutive month, along with good numbers in the Building approvals front, “today’s data provides more comfort to the RBA that earlier rate cuts are translating into stronger activity,” notes Spiros Papadopoulos, Senior Economist at the National Australia Bank.
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