Gold losses more than $10 in minutes, finds support above $1270
- Gold dropped sharply around London’s close.
- Lost $10 in minutes and boosted USD.
- The metal found support above $1270.
Gold was steady, hovering around $1283/oz and suddenly started to slide. It dropped to $1274 in 10 minutes, reaching the lowest level since Tuesday. It was trading at $1275.50, near the lows and still facing bearish pressure.
According to Zerohedge, “gold futures tumbled on massive volume as over $4 billion notional was purged instantaneously”. They added that over 30,000 contracts ripped through gold futures in one minute, the equivalent of around 10% of a typical days' volume.
Before the slide gold was moving with a modest bearish intraday bias, amid rising US bond yields. The yellow metal is still up for the week, but it trimmed most of its gains.
XAU/USD Levels to watch
To the downside, support now might lie at $1274 (daily low), followed by $1269, $1265 (last week low) and then attention would turn to the $1260 area. On the upside, now $1280 is again a potential resistance, and above weekly highs at $1288, before $1295.