Salient to Investors:
The fall in the price of gold today was the worst one-day drop in 30 years.
Miguel Perez-Santalla at BullionVault said there was one big seller at the COMEX opening on Friday, followed by a seller of 53,000 gold futures contracts on Sunday – unusual in that sellers who want to unwind big positions usually do so gradually, so as not to cause panic.
Dan Denbow at USAA Precious Metals and Minerals Fund says it doesn’t take much volume in commodity markets to drive prices lower, and the Chinese GDP number, slightly below expectations, was suspicious and may be even weaker than reported. Denbow said that longer term, the budget, entitlements and currency debasement exist, though for now no one cares.
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