Crash on the gold market – as the new week gets underway, the price of one troy ounce plunged for a time by up to 5% or around $50 to just over $1,080 during the course of early trading. Thus gold price is hitting its lowest level since February 2010, says Commerzbank. It has meanwhile recouped over half of these losses again. In euro terms, gold dipped temporarily to a 6½-month low of a good €1,000 per troy ounce. The price slide was triggered by high selling volumes on the gold exchange in Shanghai. According to figures from Reuters, over a million lots were traded there in one key contract. Apparently, the average figure so far in July had been below 30,000 lots. Speculative financial investors on the COMEX were already showing increasing pessimism even before the latest price slide. For the first time since the data series began in mid-2006, net short positions totalled 1,100 contracts in the week to 14 July – by now they are likely to be significantly higher, added Commerzbank.
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