Gold dove to 120 dollars

David McHutchon | November 14, 2016 | Views: 303

Gold dropped to a near six-month low on Monday as the post-elections slump continues and financial markets try to make sense of what a Donald Trump presidency may mean for interest rates, economic growth and inflation, said mining.com.

Gold for delivery in December dropped to a session low of $1,212.00 an ounce, the lowest since the beginning of June in already heavy early morning trading on the Comex market in New York. Gold is now down more than $120 an ounce after an initial surge on Tuesday as results showed a likely Trump victory.

Gold bears are making big bets that Trump’s plans for fiscal stimulus, including a $500 billion infrastructure spending program, will lead to strong US economic expansion, higher interest rates and a number of prominent hedge fund managers and billionaires running family offices have moved aggressively out of gold and into stocks.

Gold bulls point to likely inflation arising from deficit spending by a Trump administration, burnishing gold status as a hedge against inflation and geopolitical uncertainty boosting gold’s allure as safe haven asset.

At the moment the bears seem to have the best of it. Since the election investors in top physical gold-backed exchange traded fund – SPDR Gold Shares (NYSEARCA: GLD) – have dumped a net 15.1 tonnes (buying on Wednesday, but offloading more than 20 tonnes on Thursday and Friday.

GLD vaults now hold 934.6 tonnes or just over 30 million ounces; worth $37.1 billion on Friday.

Facebooktwittergoogle_plusredditpinterestlinkedinmailby feather
Rating: 0