Gold fell 7.3% to 563.40 in Tuesday’s trading. This is the greatest decline in a single day in the last 15 years of gold trading. There are numerous reasons for this large decline.
- U.S. fears of increasing Fed rates
- Decreased liquidity in U.S. commodities markets
- Decreased liquidity in global reserve banks for commodities
- Corrections in U.S. and global stock and commodities
- U.S. baby boomers liquidating or selling their investments (I find this semi-questionable)
I feel the next few weeks of equities and commodities trading will be crucial for the overall global markets. The next few weeks will determine if we will be heading continually lower, or if the correction will be coming to an end, signalling a new rise in prices.
We have already experienced a correction in the U.S., which is “defined” as a 10% drop in overall market prices. I see gold continually decreasing as this great fall in global markets has shaken and scared many investors and traders.
Are any readers buying gold? Any selling? What are your opinions?
WOW- That’s huge!
Thanks for sharing your knowledge on this subject. So many people write a lot of nonsense, but your post is well thought-out and looks pretty accurate.
Thanks again.
Barry