Gold price set for worst month in over a year on Trump-driven selloff
Bullion has now dropped over 3% so far this month, its worst monthly slide since September 2023.
Massive gold dump.
Gold prices continued its downward spiral Tuesday trading close to their lowest level in five years amid rising expectations the U.S. Federal Reserve will hike interest rates later this year.
The precious metal dipped down the $1,100 an ounce-mark in early Asia hours, but came back up above that level on bargain hunting.
Prices were just modestly lower in early U.S. trading Tuesday, changing hands at $1,105.10 an ounce at 9:15 am ET.
On Monday, prices dropped down to $1,080.00 an ounce, the lowest since March 2010, causing a stock blood bath among gold miners.
Brokers and market analysts are speculating that at least one major fund took advantage of the thin market to push the gold price through a support level on the charts, possibly because they had already sold gold short.
They said the sudden collapse bore similarities to “bear raids” by Chinese funds in copper in January, which drove red metal prices down to a six-year low.
“There is to my mind no coincidence that this happened in the quietest, thinnest period of the week,” David Govett, head of precious metals at Marex Spectron in London, told Financial Times.
“Anyone who trades gold knows not to put any volume into the market at this time, unless they deliberately want to move it in a big way,” Govett added.
Kitco’s analyst Jim Wyckoff says that a sustained drop below the $1,100 mark “would then open the door to still lower prices, with an ultimate downside objective being the 2008 low of $681.00.” And he illustrates his point with the following chart.
Jim Wyckoff says that it would take multiple daily closes in nearby Comex gold futures above longer-term technical resistance at $1,250.00 to suggest, from a longer-term technical perspective, that a major market low is in place.
Monday’s price dip dragged gold companies stocks down to historical lows:
Gold prices have been steadily falling since a peak of $1,900 an ounce in September 2011.
Image by Generation Grundeinkommen
Comments
Ian
I’m totally in awe of this precipitous price carnage. It will continue, to sub-$1000. Blood will run in the streets.
The rebound – as sovereign states collapse in violent chaos under a mountain of debt and reneged pension promises to the people – will be something to behold.
I’m no longer thinking, ‘to d’ Moon’, I’m thinking Pluto and beyond.
But Hey! Sell your gold now. Strong hands await.