With gold plunging over 1.5 on Monday, the yellow metal has cleared all previous gains after more than two year low of $1,322.06 per troy ounce in April. While Silver has been trading at a level last seen in 2012.
The yellow metal dipped 1.65% to $1,342.40 per troy ounce while Silver tumbled 4.69% to $21.305 an ounce. With silver correlating with gold, it touched its two-year low on Monday, losing its safe status. Silver has already lost 38% while gold has lost more the 22% this year.Central bank gold rose to an eight year high due to the massive buying from Russia and some of its former states according to reports.
The Dollar index is said to have traded at 84.071 confirming US dollar’s strengthening this month.
Philly FE’s Charles Plosser acknowledged the US economy continuous recovery as he said the job market had improved for the Federal Reserve to reduce the pace of its $85 billion monthly QE.
Should labor market conditions and inflation continue to evolve as I project, then I would view ending the purchases by year-end as appropriate,” Plosser said on Tuesday.
The Sore Fund Management LLC lowered its investment in SPDR Gold Trust which is the biggest ETP by 12% to $530,900 shares since March 31st. The reduction followed 55 % cut in the fourth quarter last year.
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