On Friday, the price of Gold hit its biggest low since 2010, and today (Monday) as the Japanese markets close, gold stocks have just suffered a “flash crash”.
According to Business Insider [1]:
At 11.25am AEST the spot price suddenly tumbled 3.8%, or $43, to $1087 an ounce.
While it has since recovered around one third of its decline, it is now trading at the lowest level seen since March 2010.
The moves in gold are being replicated across the precious metals space with platinum and palladium also lower by 5% and 3% respectively.
At this point it appears as though stop-loss orders, accompanied by thin market conditions due to the public holiday in Japan, are the main catalysts behind the sudden price decline.
Gold stocks on Australia’s ASX 200 are currently under pressure with ASX All Ordinaries gold index down 7.91%, on track for its largest one-day percentage decline since December 1, 2014.
The Australian dollar has also dipped 0.19% to .7356.
Source:
[1] http://www.businessinsider.com/gold-just-got-destroyed-2015-7
