Gold Buying ‘Opportunity’ After Surprise 3.4% Drop
Gold Buying ‘Opportunity’ After Surprise 3.4% Drop
“Gold rebounded after the biggest drop in more than a year as investors reminded themselves of a world that’s beset by risk, from the prospect of further currency weakness to the final stretch of the U.S. presidential election,” according to Bloomberg today.
As Investors See World Beset by Risk, Gold Rebounds From Tumble (Bloomberg)
Gold fell by 3.4% to $1,268.70, while silver fell by even more and was down 5.1% to as low as $17.73/oz. Gold was also down by more than 3% versus the euro and sterling gold was also down 3% as the beleaguered pound had a temporary reprieve.
The sudden sell off was peculiar and it surprised analysts. It began at exactly 1200 British Standard Time (BST) just as U.S. markets opened and concerted and continuous ‘paper or electronic’ futures gold selling continued throughout U.S. trading hours, despite no data of importance, nor corresponding sharp moves in fx markets, energy and the oil market, nor indeed in stock markets. Indeed Asian and European indices were higher overnight. U.S. indices were higher at the start of the day too and then saw very gradual declines in the course of the day.
The sharp losses for gold and silver were attributed to a renewed “taper tantrum” and angst about central banks potentially rising interest rates and the indeed the ECB potentially tapering their massive QE programme. Indeed, these concerns are being blamed for European and emerging market stock indices falling today. However, the……
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