Nearly $90 a day! What is the mystery behind the gold callback?

Spot gold continued its slide on Tuesday, accelerating after falling below 2000 in European trading to as low as $1983.33 an ounce.

Before U.S. trading, spot gold briefly fell below $1,940, down more than $90 from its session high, or more than 4 percent, and nearly $125 from its all-time high, erasing all of its gains since August.

Spot silver fell 7.00% on the day, below the $27 mark.

COMEX silver was down 6% on the day at $27.54 an ounce.

Overnight, gold futures T+D fell nearly 5%, the main contract of Shanghai gold futures fell more than 5%, silver T+D, Shanghai Silver fell more than 6%.

Precious metals plummeted across the board, with spot platinum falling more than 4% and spot palladium falling more than 6%.

The US dollar index, which has been overwhelmed for several days, has turned around and has risen nearly 20 points in the short term; The euro fell more than 30 points against the US dollar in the short term, while the British pound fell more than 20 points against the US dollar in the short term.

According to the exclusive arrangement of Gold Ten, the recent trend of gold is characterized by "rising slowly and falling quickly". According to the statistics of Trading Man's market chart, the spot gold started from 1940 USD/oz at 23: 00 on July 30th, and it took 121 hours for candles to get out of the rising market of 130 USD, setting a new record high to 2074.77! Subsequently, the rise of gold reversed after the non-agricultural day on August 7. As of 21: 12 on August 11, the spot gold fell below 1940 USD/oz, and it only took 61 hours to drop nearly 130 USD, showing the unique attribute of "slow rise and fast fall" of gold market.

For this wave of callbacks, analysts pointed out:

First of all, the trend of asset prices will not move in a straight line in any direction, and it is necessary to make a correction after soaring for several days. Sooner or later, the upward trajectory of gold will be reversed, and may be sharply adjusted back by 5%, while the reversal of silver will be even greater, but this does not mean that the rebound has ended.

In news, great progress was made in vaccine research and development in Russia on Tuesday afternoon, with the first COVID-19 vaccine registered and the daughter of Russian President Putin vaccinated. According to Russia Today, the director of RDIF, a Russian sovereign wealth fund, said that he had received requests from more than 20 countries around the world to purchase 1 billion doses of Russian COVID-19 vaccine.

Germany's economic data released in the afternoon was much better than expected. Germany's ZEW economic prosperity index recorded 71.5 in August, which was much better than the expected 58 and the previous value of 59.3. German think tank ZEW said that the hope of rapid economic recovery continued to increase.

These two news boosted the risk sentiment, and the short-term put great pressure on gold.

The callback signal has already appeared

Looking back at the recent performance of gold, the risk signal has already appeared. After breaking through $1,800 in July, gold went up almost vertically, which made the price of gold break through $2,000 in a short time. Last Friday, the rising trend of gold price reversed, and formed a huge bearish engulfing pattern, implying the risk of falling gold price. Last Friday, the Golden Week Line also closed a long shadow line.

DailyFx strategists pointed out that the rebound of the US dollar and the rising risk willingness suppressed the price of gold. Gold has risen by more than 14% in the past three weeks, and now it has entered a consolidation period. Last week, gold trading attracted a lot of quick money, and it is expected that the price of gold will usher in a more balanced rise after clearing the speculative long positions.

Singapore uob pointed out that the preliminary data of CME gold futures showed that traders increased nearly 12,000 open positions on Monday, reversing the downward trend for three consecutive days. The increase of open positions implies that the price of gold will fall further in the future, and the potential target is around the level of 1980 US dollars.

In addition, Peter Schiff, a well-known gold analyst, said that although spot gold has risen happily in the past few weeks, gold-related stocks have not kept pace, and gold stocks have not confirmed the bull market of gold. He reminded investors of this indicator and thought it was a huge potential risk.

Forexlive, a financial website, said that considering the recent performance of gold rising too high and too fast, any callback may be quite violent, but the long-term prospect of gold is still brilliant, so patience is the key. At present, it can be expected that a small number of buyers will enter the market during the sharp correction close to $1,900.

The trend of spot gold today can be described as ups and downs. Today, the risk warning notice was issued again in the previous period:

Recently, the global situation is complex and changeable, and there are many uncertain factors affecting the market operation. Prices of precious metals and other varieties fluctuate greatly at home and abroad. All relevant units are requested to do risk prevention work, make rational investment and maintain the stable operation of the market.