The clear explanation goes on:
Together with Friday’s post-payroll plunge, this has been the biggest 2-day drop in gold (in dollar terms) since the March 2020 crash.
However, unlike Friday when gold moved in response to the spike in the dollar and the surge in yields there was no offsetting move in any securities after the futures reopen (the 10Y traded back over 1.30% but the move was orderly) when over $4 billion notional, or some 24,000 contracts were suddenly and furiously dumped in a completely price-indiscriminate manner whose apparent intention was to nuke the entire bid-stack.
While there was no news or even pair-trade correlation catalyst behind the move, technicians have noted a “death cross” alongside a technical breach of USD 1,750/oz which triggered liquidation stops to the downside.- Full Article
That is what happened. Now to answer why did it happen possibly.
What’s It Mean:
Special GoldFix Broadcast games out the possibilities, risks, rewards, and caveats for investors and traders. Approximately16 minutes devoted entirely to making sense of the selloff event last night.