Wall Street throws in the towel on gold after Friday’s rout, Main Street optimism likely a pre-selloff snapshot – by Ernest Hoffman (Kitco News – June 7, 2024)


(Kitco News) – This week, precious metals markets saved all their drama for the grand finale. Spot gold opened the week trading at $2,325.26, and spent much of the first four days trading in a relatively narrow $25 range.

The expected 25 basis point rate cuts from the ECB and the Bank of Canada came and went, with spot gold eventually setting its weekly high of $2,386.75 just after midnight on Friday.

North American traders went to bed Thursday night expecting Friday morning’s nonfarm payrolls (NFP) report to be the week’s highlight for gold. But the People’s Bank of China (PBoC) stole the spotlight in the early hours, announcing at 4 am EDT that they had broken their 18 months streak of sovereign gold purchases in May and sending metals prices crashing through multiple levels of support as algorithmic stop loss orders were filled in rapid succession.

For the rest of this article: https://www.kitco.com/news/article/2024-06-07/wall-street-throws-towel-gold-after-fridays-rout-main-street-optimism