If you want some free trading education on how gold prices can respond to news, one good lesson would be the plunge below $1,200 per ounce that the metal made on June 27 amid strong economic data.
August gold fell to as little as $1,196.10 an ounce on the Comex division of the New York Mercantile Exchange, according to Bloomberg. This figure represented the lowest value for this contract since August 2010. Later in the day, the August gold contract settled at $1,211.60 per ounce on the Comex.
Spot gold did not have a good day either, as it was last down $23.40 an ounce at $1,202.50, according to Kitco News. Also, the London P.M. gold fixing fell to $1,232.75, compared to the previous P.M. fixing of $1,236.25.
While markets were motivated to force gold prices lower earlier in the week by news of rising home sales, data indicates that the holdings of SPDR Gold Trust, the world's biggest exchange-traded product backed by the metal, have plunged recently, Bloomberg reports.
Donald Selkin, who is the chief market strategist at National Securities Corp. in New York, told the media outlet during a telephone interview that the market for the metal has gained substantial momentum.
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