Gold prices make a vertical spread look attractive

Summary: This article goes into some of the factors leading to gold’s massive drop in April. Of course, one of the reasons was better-than-expected numbers here in the U.S. For the week of June 8, initial jobless claims came in 12,000 below expectation. But another reason for explaining the decline could come from Japan. Since many investors are underwater on their Nikkei investments, they’re selling gold to cover margin calls. In the short-term, gold is showing the negative momentum since the 5-day moving average is currently below the 20-day moving average. Where does it go from here? Estimates vary far and wide – some traders believe $1680 is possible by the end of the year, while others say gold could fall even more to $1120 within a year. Read more…