by David Levenstein , Gold Silver Worlds:
Gold fell around 5% last week despite no major economic data, news developments or significant news regarding physical supply and demand. Once again the decline in the price of the yellow metal can be attributed to massive selling of futures contracts leading to further technical selling as stop loss orders were triggered.
While prices dropped there was no marked decrease in global physical bullion demand or significant physical selling of any note. However, the market was reacting to two events that were unfolding. The first event was to do with the latest developments regarding Syria and the other event had to do with the possibility of the US Fed announcing plans to taper its .
Gold prices fell as the risk of a US military strike against Syria receded. And, once again traders using futures contracts succeeded in knocking the price lower.
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