3.3 million ounces dumped in paper gold yesterday – Gold drops again at the COMEX open
3.3 million ounces dumped in paper gold yesterday – Gold drops again at the COMEX open by Michael J Kosares for USA Gold
After another attempt at a rally overnight ran out of gas, gold dropped again on the COMEX open. It is down $5 on the day at $1450.50. Silver is down 9¢ at $16.75. As reported yesterday, JP Morgan and Citibank led this bout of selling with their liquidation of gold futures’ positions late last week. Since then, BNN Bloomberg reports that an additional roughly 33,000 contracts, or 3.3 million ounces, were dumped in a 30 minute period yesterday morning. Those sales drove the price down another $10 and below the $1450 mark. The selling seems to have carried over to this morning’s open. With the rapid drop in the price – almost $65 over the past week and $100 from its highs in early September – longer-term investors in the physical metal who like to buy the dips might be encouraged to test the waters at these levels.
Quote of the Day
“[L]arge government deficits exist and will almost certainly increase substantially, which will require huge amounts of more debt to be sold by governments—amounts that cannot naturally be absorbed without driving up interest rates at a time when an interest rate rise would be devastating for markets and economies because the world is so leveraged long. Where will the money come from to buy these bonds and fund these deficits? It will almost certainly come from central banks, which will buy the debt that is produced with freshly printed money.” – Ray Dalio, Bridgewater Associates, Linked-In article