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USAGOLD/Peter Grant/06-26-17
Gold sold off sharply in Europe as big sell orders hit the market. Reportedly 18,000 gold contracts ($2 bln notional) were dumped in a 1-minute period. However, the 1241.30/1235.82 support zone we were watching has contained the downside thus far.
According to Zerohedge, “With no clear driver for the move, Bloomberg has suggested it may be a “fat-finger” mistake, although many are skeptical and see either algo or central bank intervention…” If it was indeed a mistake, one might expect retracement over the short-term.
Weaker than expected durable good orders and a miss on the Chicago Fed’s national activity index should help the cause as these data perpetuate concerns about the true health of the U.S. economy. Today’s sell-off may prove to be a great buying opportunity.
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