Gold Prices

Sharp drop in gold and silver - the causes

Comments from U.S. Federal Reserve Chairman Ben Bernanke will be made ​​as a trigger for the sharp price decline in gold and silver on Wednesday afternoon in charge. The sell-off on the U.S. futures market was the major banks, however, quite.

Turbulent day of trading on Wednesday. On the morning of the gold price on the spot market for years had reached highs just above $ 1,790. Even after the extent of the recent ECB cash injection was announced ( 529.5 billion fresh central bank money has been distributed ), gold held stable above $ 1,780.

Price development of gold and silver on Wednesday

From 16 clock it came to several waves of gold and silver sales. Within 90 minutes the price of gold fell by 70 dollars or 4 percent of $ 1,785 from $ 1,715 to. Even harder hit with silver. From the day high of $ 37.40 intraday tipped the listing of more than $ 3, or 8.5 percent, to $ 34.22. Exactly at 17:30 clock recovered from the courses again their daily lows.

The trigger for the spontaneous slump make American media, the comments of the President of the Federal Reserve, Ben Bernanke, who is responsible. In a speech before the U.S. Congress, he described the risks of inflation as "under control". According to observers, so he lowered expectations of further measures konjunkturbelebender by his institution. The U.S. dollar gained ground as a result significantly against the euro.

The fact that the slump in gold and silver, then so massively failed, is a sign that large traders took advantage of the negative sentiment on the futures market, to sell off gold and silver. The price of gold traded at prices around $ 1780 also directly affect the level of a significant technical resistance.

Closed out in the wake of many speculators had resetter their long positions. At the American Mercantile Exchange Comex net long positions of speculators in recent days and weeks have been greatly increased.

The time of relapse, the cascade process and the equally spontaneous intermittent end of the slump also give reason to speculate on a concerted action sales of American banks. In the past about similar trading patterns to be identified. The American Institute had recently expanded their short positions in the futures market strong (gold reporter reported) . You need to have regular lower prices in order to collect the extensive forward selling again.

Around 18:30 clock the gold price stood at $ 1,725 ​​(1,290 €), 3.5 percent lower than the previous day. Silver traded in the spot market at $ 35 (€ 26.22) and thus from 5.3 percent below the closing price Tuesday.

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