Gold drops to five-year low
Spot gold dropped to $1,085 per ounce, a level not seen since the start of 2010.
Markets were quiet due to Rememberance Day in Canada and Memorial Day in the US. Kitco said after a brief uptick in prices, technical sellers pushed gold lower as the day progressed.
Silver followed gold down to $14.27 ounce, a 1.14% drop. Oil also dropped 3% to $45.86 a barrel. December N.Y. copper closed down 5 points at 221.70 cents today.
Gold fan Mark O'Bryne warns against buying into gold's dip:
I’d love to tell you that $1,080 is the low – that this is the mother of all buying opportunities, that you should all max out your credit cards and buy every flake you can possibly get your hands on.
But gold-lover though I may be, that is not what I see next.
Until Monday’s stabilisation, we’d had something like 13 down days in a row, which is extreme, even by the standards of this bear market, so some kind of steadying of the ship is likely.
But the bottom line is that this is a bear market. And the trend is down. Fighting the trend is no more effective than fighting the tide or fighting the wind. You’re better off accepting it for what it is, and going with it.