Violent And Panicky Gold Selling Collapse Bullion And Commodity Markets
Tuesday, April 16, 2013 2:35
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Panic selling in gold markets has accelerated on Monday, with the yellow metal falling more than $200 an ounce over the past two trading sessions. The blood bath started on Friday, as sell orders for 400 metric tons worth about $20 billion hit the market, amid rumors the ECB would force Cyprus to sell gold reserves to help finance its bailout. The violent decline was then fueled by weaker than expected economic data from China, and calls from major banks including Goldman Sachs to short bullion. Continued ETF liquidation and margin call selling makes it difficult to see a bottom in the near-term.
Panic sellers are going to kick themselves in the ass. Wait and see. Buyers will be rewarded.