Gold Sell Off May Have Been Overdone
According to Mineweb.com, Fridayís gold sell off when the metalís spot price fell by nearly $24 an ounce from its daily high of around $626 in reaction to better than expected US labour figures, which in turn boosted the value of the dollar on the forex market, may have been overdone.
Fridayís sell-off was put down to a number of factors, but seems to have been triggered by the new job figures in the US which showed the creation of 167,000 new positions in December Ė well above the 100,000 anticipated by the market. A subsequent fall in the gold price seems to have triggered stop loss selling by funds, which pushed the price down quite dramatically. Other precious metals platinum, palladium and silver, all followed the gold price down Ė and here again some recovery has been seen in early trading Monday.