Gold was down nearly 2% in Monday morning trading. It briefly touched $1,088.05 per ounce, representing its “weakest” point since March 2010, according to Reuters. Moreover, gold suffers from an overall bearish sentiment in general. Let’s take a look to see what specifically is driving gold downward and ascertain whether it will turn around anytime soon.
Gold, like everything else in the financial markets, is subjected to the expectations game. Sometimes the change in fundamentals does not matter as much as the change in fundamentals versus the expectations of pundits who help drive prices in the market. China, after six years of radio silence on its gold transactions, revealed that it owned 1,658 metric tons of the metal, which represented an increase, according to Bloomberg. However, it was not as much as expected by some notable brokers. This adds to the bearish sentiment toward gold, compelling investors to exit the…
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