Gold prices carry on dropping on Monday 26th September 2011 and continue the downward fall after the massive 12% market drop last week. Comex Gold for December delivery fell $45 per Troy Oz. As the Dollar strengthened to add even further downward pressure to the falling Gold price. Less trades and contracts show traders are exiting the Gold market in favour of other investments such as currency.

The US Dollar $ currently gaining strength is usually a bad sign for the Gold market, but can the Dollar hold on to its recent gains? The Dollar being up does not support stocks or commodities so this would not necessarily indicate a movement of money from commodities to stocks instead by traders.

As the period of the end of the third quarter of the year 2011 approaches contracts will be expiring and investors will have to make a decision on the direction of the Gold market after this recent dramatic fall. Margin calls last week may have helped damage the Precious Metals price as the CME Group increased Gold’s margin requirement by 27 percent. The margin calls and expected profit taking after the recent Gold Market Rally are obvious possible causes of the Gold Fall in price.

But on a positive note this recent drop in the price of Gold could offer new investors a chance to get involved in the market. If you thought that you had missed the boat with recent rallies in Precious Metals you may have a viable entry point during this bearish period in the market. Many analysts believe that these numbers will trigger a rally in the market later in the week after Gold hovered around the 200 day moving average point of $1530 (a possible point of support for the market).

Metals Science
Commodities, gold, precious metals