Three Reasons Behind The Recent Plunge In Gold

After what had been a stellar year for gold, the week after the Nov 5 presidential election has seen a sharp pullback in the price of the precious metal, including the longest stretch of consecutive selling in months hitting the most oversold level in over a year, and a price which dropped below the 50DMA and is on the verge of breaching critical 100DMA support.

Gold sold for 4th day in a row, drops to 2 month low and approaches 100DMA. Most oversold since Oct 2023 as traders continue to lift yields, US dollar on expectation of aggressive Trump stimulus, tariffs. Meanwhile, US debt hits new record high just under $36 trillion pic.twitter.com/WuG5CsTCla

— zerohedge (@zerohedge) November 13, 2024

Indeed, as our partners at The Market Ear pointed out today, gold has not seen such a big 7 day down move since Covid...