On Monday, the market is down 160 points in midday trading. Taking an especially hard hit is the price of gold.?
After falling on Friday from a selloff in the futures market, the precious metal continued its downward spiral on Monday. It was down?more than 8% at one time, dipping lower than $1,400 an ounce for the June 2013 contract.
Other metals and oil have also declined and the?SPDR Gold Trust (GLD) was down $10.79 to $133.15, reported CBOE.?
Not surprising, CBOE Gold Volatiity Index has jumped 57% on Monday after its 39% increase on Friday. At the time, it represented its greatest rise as defined by percentage terms, reported The Wall Street Journal.
So what spurred the large gold price fall with the subsequent jump in the Gold VIX reading? The WSJ commented:?
Worries are spreading that Asian buying, which has helped prop up gold prices?for years, may be fading. China reported its economy unexpectedly slowed last?quarter, spurring fears that Chinese consumers, faced with less cash, may stop?purchases. In India, the largest gold industry group warned that the country is?losing confidence in the metal because of the recent slide. Investors in Europe?cashed out of the metal en masse amid concerns that U.S. stimulus may be cut?short, and following news that Cyprus may sell a chunk of its gold reserves to?fund part of its bailout package.
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