(Kitco News) - In my Kitco AM report I mentioned the reasons safe-haven gold is selling off late this week despite global stock markets remaining in meltdown mode. Read the first paragraph of that report for some interesting perspective.
One other element I want to point out is that the gold futures traders are also playing a big part in the overall gold market’s selling pressure this week. Reason: Futures trading is highly leveraged. That can be both good and bad for a speculative trader. When the futures market’s price goes the trader’s way, he or she can make a lot of money in a hurry. However, when a futures market turns against a trader, the consequences can be devastating.