Trader Tells Us Why Gold Got Hammered

Gold futures tanked today falling nearly 2% for a combination of reasons, according to a futures trader consulted by Business Insider

He pointed to rates rising at the higher end of the yield curve (the 10-Year and the 30-Year) noting that the higher yields are “indicative of the market pricing in a better global growth story.”

He noted that with better growth prospects, the Fed could potentially back off its Treasury purchases, which is dollar bullish.   That in turn would be another reason why gold would be lower.

He speculated that some hedge funds may be liquidating their positions.

If you know more about this, we’d love to hear from you.  Please send an email to [email protected]

gold chart

Photo: FINVIZ.com

 

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.