Mining News

Flash crash shows why it’s tough to be bullish on gold right now

Share on facebook
Share on twitter
Share on linkedin
Share on email

Gold’s swift drop to the lowest since March has highlighted a tough truth for the precious metal — there’s a growing list of reasons to be gloomy. While Monday’s flash crash was exaggerated by a combination of technical factors and poor liquidity, the initial trigger remains true — strong US jobs data showed the world’s largest economy is well on its way to recovery. That sets the stage for the tapering of stimulus by the Federal Reserve, potentially removing one of the key drivers that helped send gold to a record last year.

Share this article

Share on facebook
Share on twitter
Share on linkedin
Share on email