[heading]Tomorrow’s Financial Times Front Page & The Capitulation of Gold[/heading]
“The word at the moment is capitulation,” the precious metals analyst at Credit Suisse told the Financial Times for their June 27 edition.
The Financial Times (US) tomorrow will feature the tumbling price of gold. With a large headline that reads “Gold Price tumbles on fears of an end to QE,” the Financial Times pushes forward a flawed storyline in the price of gold. Adding in the June 27 article that last week’s selling was led by long-term investors, the precious metals analyst at Credit Suisse and Financial Times are sure to add to the low sentiment across the gold and precious metals complex.
The article details gold hitting record lows since 2010, and details how gold is heading towards its biggest quarterly drop since 1971.
Although the stock market rose 16 points or 1%, approximately, gold managed to fall still 4.1% despite multi-month losses.
While April’s declines are theorized to have been halted by steady Indian and Chinese demand during that period, that it did not return this time around as led to the lack of turnaround.
The Chinese are reasonably concerned due to Mainland Chinese stocks slipping throughout the week, whilst European and other Asian markets edged higher. On Tuesday China’s central bank, the People’s Bank of China, which stood on the sidelines until recently as China’s cash crunch worsened, issued a statement meant to sooth markets and maintain pressure on private corporate banks to deter too-loose lending.
The central bank was hesitant to comment until this week on the intensifying situation, which has led to a ere of uncertainty and nervousness.