Gold savaged by lack of Chinese demand and rebound in US yields

On Friday the news that China had not added to their Gold reserves at all in May unleashed a wave of selling that did not let up for the rest of the day. An update here notified readers soon after that news emerged, when the price was tumbling lower, towards $2,350. Subsequent updates followed and eventually the metal fell to below $2,314 and then below $2,300 ahead of the weekly close. Gold later fell to a low at $2,286.86. That meant the sell-off extended to just over $100 from the earlier Asian high, at $2,387.76. Gold later closed the week, below the $2,300 handle, at $2,293.78. So, readers here were alerted to the prospect of just how damaging this news from China could be and the impact on long positions and how many of those were forced to exit the trade. The much better than forecast US jobs report later added to that liquidation, as US yields once again rebounded on that news. Overnight Gold did briefly recover the $2,300 handle. The high seen was at $2,301.37, but it is back below that $2,300 handle now, currently trading at $2,293.90