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

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