This is very difficult to confirm, but the talk on Wall Street by some Gold traders is that this sell off in the price of Gold is rumored to be emerging-market central bank selling.
I guess it makes sense, as many emerging countries’ currencies have been losing ground versus the U.S. Dollar and most of their debt is to be repaid in U.S. Dollars not their local currencies.
I expect the worst is over, for the time being as the U.S. Dollar index is off its intraday highs.
Enjoy the rest of your day.
Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.