Stop losses hit hard on gold

Sold heavily to lows not seen since 2010

Monthly chart showing multi-year lows now:

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In the news since Friday:

  • China's gold reserves stood at 1,658 tonnes at the end of June, the central bank said on Friday, up 57 percent from the last time it adjusted its reserve figures more than six years ago.
  • The figures make China the world's sixth largest official sector gold holder after the United States, Germany, the International Monetary Fund (IMF), Italy and France.
  • China considers its gold holdings a state secret and does not report its holdings on a monthly basis to the International Monetary Fund as most other countries do.
  • It last adjusted its reserve figures in April 2009, when the level was lifted to 1,054.1 tonnes from 600 tonnes.

While China added to gold reserves, the amount was under what many had expected. I did see one ... errr ... 'analyst' I'll call him ... saying China was lying about how much they bought 'cause they want to buy more.

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Anyways ...

We've been thinkin gold has been a bit heavy lately ... said UBS:

there is still a risk right now that gold's lack of 'traditional' safe haven response could disappoint some participants and weigh further on market sentiment"

And, more from Friday:

If the Chinese government isn't in love with gold, there could still be plenty of downside from here.

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This fall in price is going to make a lot of people very angry ....