Tue 08 May 2012 11:21:01 CT
A significant washout in gold prices this morning seemed to be ushered in by escalating concerns of global slowing from the Euro zone. With sharp declines in equities, adverse currency market action and a lack of fresh US data, the trade is of a mind that current conditions will be allowed to worsen before some action is taken at the central bank level. Given the magnitude of the slide in gold prices today, it is also likely that classic technical stop loss selling contributed to the slide in gold prices, as the June gold contract took out almost all of the 2012 gold price action with this morning's slide. Apparently some players are already looking forward to European debt auctions later this week and that has prompted a sell the rumor mentality.
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