Gold plummets in biggest single-day crash in 7 years
Analysts said many gold traders were "looking for an excuse to lock-in profits" and found a reason to sell in Russia's Covid vaccine approval.
Gold has fallen below $1,900 for the first time since July 24 and is currently trading near $1,880 per ounce on Wednesday after recording the biggest single-day decline in seven years on the previous day.
Prices fell by 5.72 per cent on Tuesday as the US 10-year yield jumped by over six basis points as the zero-yielding yellow metal usually faces selling pressure when yields rise.
Stocks gained as investors rested optimism on falling US Covid-19 hospitalisations and stimulus talks. Treasury yields also jumped, further hitting gold's relative value.
Precious metal analysts said many gold traders were "looking for an excuse to lock-in profits" and found a reason to sell in Russia's coronavirus vaccine approval.
"Gold is fast approaching support of the ascending trend-line rising from March 20 and June 5 lows, having breached the psychological support of $1,900 a few minutes before press time. The yellow metal is currently trading near $1,880 per ounce and the rising trendline support is located at $1,860. The 14-day relative strength index has breached the trendline representing the bull-run from lows near $1,450 seen in March. The indicator is now hovering in bearish territory below 50," they said.
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