Huge sell order pushes gold to six-week low


Reuters/Zandi Shabalala/06-26-17

Gold tumbled to its lowest price in nearly six weeks as a large sell order and a stronger dollar hit sentiment on Monday, though losses were limited by political uncertainty around the world.

…The sale of 18,500 lots of gold, totalling 1.85 million ounces, and 5,000 ounces of silver in 5,500 lots on Comex in a short space of time was behind falling prices, said Afshin Nabavi, head of trading at MKS in Switzerland.

“Clearly somebody sold it by mistake and bought it back quickly, triggering stops below $1,250,” said MKS trader Bernard Sin.

“Fundamentally, there is still a lot of uncertainty in the world, with Italian bank bailouts, Trump’s policies and Brexit. The world is in geopolitical chaos and gold is still good insurance.”

PG View: Gold was unable to break the 200-day moving average, so if it was indeed a mistake, these losses should be retraced.

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