ZFX：Gold market crashed! The biggest drop in years!
The price of gold and silver have experienced a crash on Tuesday after the massive gain these weeks. Gold price plummeted nearly 6%, more than $100 per ounce, and the silver price plummeted more than 15%.
Gold clawed back some lost ground on Wednesday earlier session, however, the downtrend seems not yet finished, further dropping to the day low of $1862 level.
The market believe that it may be related to the additional US stimulus package concern. The expectation is missed as the deal so far was no progress at all between the US Congress and the White House.
The market is also questioning about the safe-haven demand.
ZFX analyst Jacob Leung said that, profit taking would be a big reason for such bearish move. Anyway, investors may realize that the global pandemic situation would become normalized after the vaccine news from Russia. Also, we need to be aware of the “yield” factor. The US Treasury yields have bounced from the low levels recently, triggering such big correction.