Gold and silver are tumbling

The price of precious metals are sinking on Thursday, continuing a streak of losses for the commodities.

As of 11:34 a.m. ET, the price of an ounce of gold has sunk to $1.256.35, down $12.25, or 1.00%, for the day.

Silver’s drop has been bigger, down $0.40, or 2.25%, to $12.97.

This is a continuation of a bad week for the precious metals. Gold is now at its lowest since June 6 and silver is its worst level since June 23, the day before the UK’s vote to leave the European Union.

Credit Suisse research analyst Anita Soni cited a few reasons for this drop-off, including continued dollar strength, rumours that the ECB would begin tapering, and a few less publicized factors.

“Given $1,300/oz’s significance as a technical and psychological level, we also believe that the decline was in part driven by stop loss selling, with net long positioning on the Comex last reported as 26Moz on Sept. 27th, a relatively elevated level given it is near the 28.7Moz peak from July 2016 and above the 12Moz average since 2006,” said a note from Soni. “Additionally, Chinese markets are closed due to the Golden Week holiday, taking away a potential source of buying.”

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