Investors begin 'capitulation' selling of EM, gold, resources. Investors are dumping billions of dollars worth of gold, commodities and emerging market assets in a wave of "capitulation" selling, Bank of America Merrill Lynch said on Friday.
Gold has another sell signal, since the last one a little over a week ago gold has fallen $60 per ounce. My research suggests that gold (on the daily chart) has once again turned into a longer term downtrend after being in congestion for more than 5 months--gold has broken out.
Roughly one month ago, the price of a gold futures contract expiring in December was trading at just above $1,200 per ounce. In the past few days a so-called “bear raid” on the gold market in general has driven its price down close to $1,080.
Gold fell more than 1% to a five-year low on Wednesday as a bounce in the dollar fueled downside momentum, with investors continuing to pull away from the metal after its dramatic slide earlier this week.
Gold edged higher on Tuesday, the day after it took its deepest dive in years and hit five-year lows, with many dealers bracing for more losses on expectations for a rise in U.S. interest rates and subdued demand from India.