Source: Bloomberg
Gold prices fell on early Monday trading, as investors considered the possible tapering down of monetary stimulus by the US Federal Reserve.
- Spot bullion fell over 4% or $60 in a matter of minutes before paring down losses.
- The initial drop tapered down, with the bullion down 1% to $1,745.31 an ounce by 12:20 p.m.
- Prices are still hovering among four-month lows after the strong employment data released Friday.
- Futures trading surged with over 3,000 contract changes in a minute.
- The crash came after the technical support and stop-loss levels were hit, with liquidity down as Japan and Singapore went on holiday.
- Analysts believe gold recovered on the back of bargain hunting.
- Investors now expect the Federal Reserve to cut down its bond-buying program, raising concerns of a possible rate hike in 2022 and 2023.
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