GOLD TANKS, FALLS BELOW $1,600

Gold prices are falling this morning.  The futures contract for April delivery just fell below $1,600/oz, down $35/oz for the day.

G20 leaders are meeting in Russia.  The hot topic is currency wars, or the risk that global central banks will compete to devalue their currencies.

Currency devaluation is arguably bullish for gold.

“I don’t think that Mario Draghi was trying to talk the euro up or down,” said ECB member Jens Weidmann to Bloomberg.  He believes that the ECB “will abstain from manipulating or directly targeting the exchange rate.”

Meanwhile, a new report from the World Gold Council shows that central banks continue to add to their gold reserves.

Here’s this morning’s chart via FinViz:

gold

Photo: FinViz

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.

Tagged In

gold moneygame-us