It’s the final day of the year, and gold is getting slammed.
The metal is trading at $US1187 an ounce, down 1.4% from yesterday’s closing price. Monday was a tough session too — gold fell 1.4% on that day as well.
The gold price has fallen 29.1% in the year to date — the biggest yearly drop since 1981 — making it among the worst performing of major asset classes in 2013.
Now, it’s hovering just above the low of $US1179.40 struck at the culmination of a major crash in June. Earlier this morning, it fell as low as $US1181.40.
“Certainly it would not be a surprise to see further selling pressure today as tax-loss selling persists,” says Jonathan Krinsky, chief market technician at MKM Partners. “For a more trade-able low to occur, we would likely need to see some sort of false-breakdown, followed by an upside confirmation day. That ‘could’ occur today, if we break 1180 and then were to close positive on the day. That scenario, however, is not likely in our view.”