Far East Capital Newsletter
Gold is slapped down as traders take profits; forward selling comments
16 Aug 2020

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Gold is slapped down as traders take profits; forward selling comments

Last week I posed the question for gold, "Where to now?" Well, the quick answer was "down". It is Sod's Law that the gold price should take a dive only a few days after my positive comments last week, but you get used to that in the markets. As soon as you think you have it all figured out, you will be reminded that every day is a new day.

What started as profit taking last week turned into the biggest one day selloff in gold since 2013, down more than 5%. Why? One comment was that there was a slight rise in the US interest rate which seemed to act as a catalyst, giving traders the opportunity to give the gold price a good kick in the guts. An other view was that the gold price had been too strong too quickly, so a sizeable correction was overdue. 

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