Salient to Investors:
Gold’s 14-day relative strength index was below the level that indicates a rebound may be imminent.
Jeffrey Christian at CPM said it is too soon to predict if a buying frenzy will be repeated because the enthusiastic buyers in April have become more cautious, though says the worst of the decline is behind.
One ounce of gold bought as much as 65.4626 ounces of silver, the most since August 2010, as investors lost faith in a store of value with ties to economic growth.
Le Yukun at BOC Intl (China) said the gold miners are vulnerable to a price drop because every 10 percent drop in bullion is likely to reduce profits at Chinese gold miners by over 20 percent on average.
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