The Real Reasons Gold Dropped On Wednesday And Why You Shouldn’t Worry

The Real Reasons Gold Dropped On Wednesday And Why You Shouldn’t Worry

NEW YORK – JANUARY 9: Gold bullion bars are seen for sale at Manfra, Tordella and Brookes, Inc. … [+] Gold prices took a significant tumble Wednesday. But that doesn’t mean that long-term gold investors should turn bearish.

Yes, the drop in prices was swift and in some ways abrupt. Front month gold futures dropped from a high around $1,910 a troy ounce early Wednesday to around $1,880 recently, according to Yahoo data . The SPDR Gold Shares (GLD) exchange-traded fund, which holds bars of solid bullion, moved in a similar way.

But here’s what’s really happening, and it is nothing to do with investors souring on gold as a long-term strategic asset.

First, stocks dived Wednesday on the back of the news that infections of the COVID-19 virus have ballooned, prompting the U.S and Europe to implement stricter lockdowns. By mid-afternoon, the S&P 500 was down 2.9%, and the SPDR S&P […]

About the author: StockMan
Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, you should before acting on the information or advice, consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs. Please be aware that any information posted on this site should not be considered to be financial product advice.
Posting Guidelines
  • Do contribute something to the discussion
  • Do post factual information, analysis and your view on company valuations
  • Do disclose if you have an interest in a security
  • Do take our Terms of Use seriously
Do Not
  • Do not make low-content posts, unsubstantiated ramps or untruthful/misleading statements
  • Do not complain about a post unless you have reported it first, and not on the forum.
  • Do not post financial advice
  • Do not advertise or post sponsored content

Get involved!

Get Connected!

Come and join our community. Expand your network and get to know new people!


No comments yet