Gold Futures Plunge Seen as Central Bank Opportunity

The recent drop in gold (futures) is said to have divided central banks perception and debate whether it is of low enough value to increase investment.  The gold futures plunge these last three trading sessions is unlike anything seen in the gold market for the last 30-years.

Central banks in Australia, Korea, South Africa & Sri Lanka have all made public statements regarding the recent gold (futures) drop in price, but not all are agreeing that this is an opportunity.  Central banks are said to own almost 20% of all the world’s gold ever mined, and many have boosted their holdings the most in the last 50 years.

Gold futures steep drop has changed the daily trend from up to down.  I felt the need to exit gold futures in my trading yesterday after a $196 per ounce price change in gold profit.  I realized if/when bounce in price occurs, it can go right through our protective stop at night while “sleeping.”  Even the electronic markets kick-out orders when the markets jump through prices – something I don’t wish to risk…


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