27th June 2017

Gold fell to a six-week low on Monday and was at its weakest point (off more than $20/ounce) shortly after the US open, this after a large sell order apparently got triggered by a possible trading mistake. Reuters reports that 18,500 lots of gold and 5,000 ounces of silver were traded on COMEX in a short space of time at around 9 AM US East Coast time. But prices recovered quickly and by the close of trading, the precious metal pared its losses in half. Still, the weaker close was attributable to the bearish impact of a stronger dollar and relatively buoyant US equity markets, two variables that have dogged gold this entire month. With respect to the dollar, the greenback rebounded against the Euro late in the day on Monday after ECB chief defended the central bank’s easy monetary policy. Sterling held up somewhat better on reports that British PM May had finally struck a deal to form a governing coalition with the DUP.