Monday, 20 July 2015

Gold drifts lower, rabid bears in control

Otmane El Rhazi from The Bullion Desk.

Gold continued its perilous dive as a flash crash of sorts pushed prices to lows unseen in half a decade.

Gold for August delivery on the Comex division of the New York Mercantile Exchange was last down $27.40 or 2.4 percent to $1,104.50 per ounce – the lowest price since April 2010.

As markets opened in Asia, prices were in a free fall until the the bungee cord pulled-back at $1,085. Traders sold five tonnes of the precious metal, shedding roughly five percent of its value within minutes.

“It was panic selling on the (Asian) open…kind of a like a flash crash,” a high frequency trader (HFT) said in a telephone interview this morning.

Prices have pared losses during the early morning US trading period, but a close below $1,100 could send prices back to the $1,085 level.

As for the other precious metals, Comex silver was showing restraint at $14.755 per ounce, down seven cents.

Platinum for October delivery declined $17.80 or 1.8 percent to $983.50, while the most actively traded palladium contract was at $614.0, down $5.00.

(Editing by Tom Jennemann)

The post Gold drifts lower, rabid bears in control appeared first on The Bullion Desk.

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