Which US presidential candidate does gold prefer?
Gold loves chaos and should be hitting new highs, especially with inflation coming down and with it, two rate cuts likely before year’s end.
Gold prices tumbled to $36.45 or 2.1% to $1,669.21 per ounce on Tuesday morning due to worries about Greece and a flight to the American dollar.
The drop was the lowest price for gold since January 24. Since the start of the year, gold has only managed to gain 6.7%.
This week has been gold’s worst since since December. On Monday, gold dipped $6.92 to $1,705.66 per ounce.
Silver followed gold’s lead and gave up 3.9%, hitting a low of $32.70 earlier in the day.
In 2011 trading in gold was the most volatile since 1980 with the gap between the year’s highs and lows coming in at close to $600 an ounce or a 32% range. In 1980 when gold hit a record $850 an ounce the spread was even greater at more than 40%.
This historical drop coincides with the latest report of London-based think-tank Chatam House, which warns investors of the severe damage that returning to the gold standard could cause to the global financial system.
Dow stocks were broadly under pressure, with Caterpillar (CAT), Bank Of America (BAC) and Alcoa (AA) all down more than 3%. Caterpillar gapped down below its 50-day line and was 8% below its 114.75 buy point.
Follow gold prices and other precious metals here.
