Gold falls below $2000 per ounce

The further reactions across the markets have seen losses on the opening for stocks and further rises in US treasury yields, following the higher than forecast US CPI data. That has now pushed markets back in terms of their pricing for the first Fed rate cut. Some while back, an update here noted that it was highly unlikely before the summer after the latest US jobs report. However, many analysts still insisted it would come in March or perhaps May. That was never a base case here though and so the push back in US yields is an understandable reaction by a market that has been caught flat-footed and in the headlights of an equity market that was on fire. Well, they might have to re-think it all now and when it comes to that, the same applies to gold holders too. As you can see a few more of those have been forced to part company with the metal this afternoon. Gold has now fallen to below $2,000 per ounce, as the US equity markets reopen and the long unwind in the futures transposes itself into cash. So, Gold has fallen to a low so far at $1,995.78. Looking at the chart of this one, I see the first major technical support in place right now at $1,989.28 (100 day moving average) and I would not rule out a test of that level today. Gold is currently trading at $1,996.10