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What on earth is happening to gold?
Gold has been plunging; it's near a two month low and that's caught many investors by surprise. Saxo's Head of Commodity Strategy, Ole Hansen, says many traders had been buying gold in anticipation of some sort of self-haven status because of the uncertainty created by the US shutdown. However, the market found itself "long and wrong".
Technical factors are also in play here. Once gold hit $1,300 per ounce, automatic sell-orders were triggered and people began to wonder whether we'd see another new low. Ole says investors need to be cautious. The next key level is $1,277 / oz. He says if gold moves below that, we could see a move back to the lows we saw in June. However, confidence will return if we can break clear of the $1,320 / oz.
01:11 minutes
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