Monday, gold futures fell to settle at their lowest mark since December, and silver futures finished at their lowest mark in over 10+yrs, as the Fed’s emergency decision to slash interest rates failed to stem losses in the stock market, sending traders scrambling for cash.
Prices for the 2 precious metals managed to significantly cut their losses by the settlement, as short covering kicked in.
Gold had dropped more than 4% to hit the day’s low, and silver dropped by as much as 19%, remember gold is money, silver is an industrial metal.
We saw traders were exiting everything which is giving them profit with a technical selloff triggered when gold fell below 1,500 oz.
Gold’s inability to drop below Key support at 1,440 resulted in short covering and subsequent buying in gold, including good physical demand in Asia.
Gold for April delivery US:GCJ20 on the COMEX lost 30.20, or 2%, to settle at 1,486.50 oz the lowest finish for a most-active contract since 20 December, according to FactSet data. Prices had dropped by more than 4% from Friday’s settlement to touch an intra-day low at 1,450.90.
May silver US:SIK20 fell 1.684, or 12%, to 12.816 oz following an intra-day low at 11.77. Prices for the Devil’s Metal ended at the lowest since July of Y 2009.
Other metals dropped sharply on the COMEX, with May copper US:HGK20 down 2.9% at 2.3925 lb. April platinum US:PLJ20 lost almost 12% to 657.70 oz, while June palladium US:PAM20 shook off earlier declines to finish up 0.3% at 1,514.10 oz.
Have a healthy day