Gold Slides Again as Longs Wait to See if ECB Cuts

Gold Slides Again as Longs Wait to See if ECB Cuts By Barani Krishnan for – Gold continued its slump Tuesday, hitting near one-month lows below $1,500, as longs in the yellow metal wait to see if the European Central Bank proceeds with a rate cut that would be friendly to the safe haven.

Spot gold, reflective of trades in bullion, was at $1,492.69 per ounce by 1:50 PM ET (17:50 GMT), down $6.28, or 0.4%, on the day. The session low was $1,486.59, a trough since August 13.

Gold futures for December delivery settled down $11.90, or 0.8% at $1,499.20 per ounce on the Comex division of the New York Mercantile Exchange. The December contract’s session low of 1,494.45 also marked a bottom since August 13.

“Given the skewed positioning and recent break of the $1,500/oz level, we would not be surprised to see the yellow metal trend toward $1,480 or slightly lower from here,” TD Securities said in a note.

“The recent moves in risk markets have seen traders pare back their expectations of Fed rate cuts, which suggests that any additional downside from here should be temporary and represent a buying opportunity given the underlying economic weakness and dovish central bank tilt still remains.”

Investors in gold and across markets will be looking out for the ECB’s monthly meeting on Thursday, where a rate reduction has been forecast as part of a broader package to stimulate the eurozone economy.

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Rory Hall, The Daily Coin. Beginning in 1987 Rory has written over 1,000 articles and produced more than 300 videos on topics ranging from the precious metals market, economic and monetary policies, preparedness as well as geopolitical events. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver, Silver Doctors, SGTReport, and a great many more. Rory was a producer and daily contributor at SGTReport between 2012 and 2014. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Gerald Celente and Peter Schiff, to name but a few. Don't forget to visit The Daily Coin and Shadow of Truth YouTube channels to enjoy original videos and some of the best economic, precious metals, geopolitical and preparedness news from around the world.