Flash Crash Shows Why It’s Tough to Be Bullish on Gold Right Now
- Spot gold prices dropped as much as 4.1% in Asian trading
- Attention turns to U.S. inflation data later this week
This article is for subscribers only.
Gold’s swift drop to the lowest since March has highlighted a tough truth for the precious metal -- there’s a growing list of reasons to be gloomy.
While Monday’s flash crash was exaggerated by a combination of technical factors and poor liquidity, the initial trigger remains true -- strong U.S. jobs data showed the world’s largest economy is well on its way to recovery. That sets the stage for the tapering of stimulus by the Federal Reserve, potentially removing one of the key drivers that helped send gold to a record last year.