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.
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