Gold correction extends to below $2,300

Yesterday Gold remained under pressure all the way into the US close, where it ended that session at $2,327.30, which was pretty much on the lows of the day. Earlier this morning that lower close was then followed by a sharp sell-off, that extended to below the current 21day moving average (in place now at 2,309.65) and below the $2,300 handle. The low seen was set at $2,295.73. It has rebounded from that low now though, but at the time of writing this update, it is hovering around that price level. The earlier rebound from the low saw it lift close to $2,315. The driver for this is a shift in risk aversion, rebound in stocks and some clear evidence that recent central bank buying was less than many in the markets had suspected. Gold is currently trading at $2,309.60