The gold market has never seen anything like this.
The moves over the past hour or so are historic as we’ve seen a nearly $500 intraday swing.
There is no real catalyst here and that’s what makes the gold market so dangerous right now. Volatility cuts both ways and when you get unprecedented moves to the upside, there is always the risk of the reverse.
The old adage is that bull markets go up the escalator and correct on the elevator. That hasn’t really been the case in gold as it hasn’t had many sharp corrections but perhaps we’re getting a taste of that today.
Impressively though, the bids at $5140 have been strong and it’s bonces an impressive $160 from there.
Naturally the moves are even more insane in the silver market.
I think the worries in market really started in stocks and crypto. The rout in Microsoft today is causing many market participants to re-evaluate risk levels and take down leverage. Bitcoin is down 5.5% to $84,400 and that’s a reminder that markets can cause real pain, particularly when valuations are high.
Microsoft’s earnings report wasn’t even bad today but the decline is the seventh worst ever.
This article was written by Adam Button at investinglive.com.