{"id":1200980,"date":"2020-08-11T10:57:20","date_gmt":"2020-08-11T15:57:20","guid":{"rendered":"https:\/\/www.mining.com\/?p=1032340"},"modified":"2020-08-11T10:57:20","modified_gmt":"2020-08-11T15:57:20","slug":"gold-price-plunges-below-2000","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1200980","title":{"rendered":"Gold price plunges below $2,000"},"content":{"rendered":"

Gold prices dropped below $2,000\/oz on Tuesday as the dollar clung to recent gains and risk appetite was boosted by an expected US stimulus deal<\/a>, prompting investors to take profits from bullion\u2019s explosive run to a record high.<\/p>\n

Spot gold fell 3.8% to $1,949.97\/oz by 11:20 a.m EDT, while US gold futures slipped 4.2% to $1,952.10\/oz in New York.<\/p>\n

\u201cThe retreat was inevitable,\u201d StoneX analyst Rhona O\u2019Connell told Reuters<\/a><\/em>, adding that gold has been technically overbought for a while.<\/p>\n

The fact that gold did not advance further despite rising geopolitical tensions showed that a lot of supportive elements for gold have already been priced in, she explained.<\/p>\n

\n

\u201cThe recent washout of speculative long positioning sets gold up for a more balanced rally going forward.\u201d<\/p>\n

Jeffrey Halley, senior market analyst at OANDA<\/cite><\/p><\/blockquote>\n

Meanwhile, global equities hit multi-month highs on expectations that US Congress will agree a massive stimulus deal. Looming US-China trade talks have also raised hopes that geopolitical tensions would ease between the world’s two superpowers.<\/p>\n

“Beyond technical triggers, the fundamental reason for gold\u2019s moves is that the dollar weakness of the past few weeks has paused,” Saxo Bank analyst Ole Hansen said<\/a>.<\/p>\n

But most analysts still expect a positive trajectory for gold, with the metal having gained more than 30% this year as unprecedented money printing by central banks and near-zero interest rates pushed investors into bullion as a hedge against possible currency debasement and inflation.<\/p>\n

\u201cIt\u2019s quite easy to see gold going to $4,000\/oz,\u201d Frank Holmes, CEO at investment firm U.S. Global Investors, told CNBC earlier this week<\/a>.<\/p>\n

He pointed to the trillions of dollars needed in stimulus to tide the US economy during the coronavirus pandemic, and added that G-20 finance ministers and central banks are \u201cworking together like a cartel and they\u2019re all printing trillions of dollars.\u201d<\/p>\n

However, Yung-yu Ma, chief investment strategist at BMO Wealth Management, warned that factors such as the development of a coronavirus vaccine and the November elections could change the fortunes of the precious metal.<\/p>\n

Earlier, Russia President Vladimir Putin announced<\/a> that his country had become the first to grant regulatory approval to a covid-19 vaccine after less than two months of human testing.<\/p>\n","protected":false},"excerpt":{"rendered":"

Spot gold fell 3.8%, while US gold futures slipped 4.2%.<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[2849,949,369,4],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1200980"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1200980"}],"version-history":[{"count":6,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1200980\/revisions"}],"predecessor-version":[{"id":1200997,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1200980\/revisions\/1200997"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1200980"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1200980"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1200980"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}