Gold Support at 880$ has just been breached after resistance for the better part of the day.... next support on charts is at 850.
Meanwhile, one of the major reasons for this sharp downturn is the reference in the G20 meet that IMF could consider selling the IMF gold "to aid countries in financial crisis." This kitty of IMF gold is a cool 403 tonnes of gold. That would be 12,938,315 troy ounces. This is not a new proposal though, we've heard it before .The reason that it's keeps getting repeated is that that's the only real kitty IMF has!
The effect on the gold prices is purely reactive in nature. Firstly, this sale is easier said than done, it's still not agreed upon. Secondly IMF's 403 tonnes of gold (or 12,938,315 troy ounces of gold) may seem a lot of gold till you realise that the DAILY turnover on the London Bullion Market Association in 2009 was 18,300,000 oz. per day!
These are surely interesting times ahead as far as gold is concerned....
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