Gold falls below $2400 in heavy selling

You would expect gold to benefit with global computers crashing but that’s not the case today. Commodities are struggling across the board as profit taking hits hard.

Gold is down nearly 2% and silver is down 3.3% as this week’s breakout fails. It’s now down on the week and if we finish like this then we’re going to have a worrisome weekly candle.

It’s tough to tie this one back to fundamentals as the WSJ writes today that the Fed should be cutting in July. Falling behind the curve will lead to heavier cuts later and more dollar weakness — both should boost gold.

In other markets, there is a rise in yields that is negative for gold but it’s 4-5 bps across the curve. The FX market isn’t doing much but the dollar is generally stronger.

I suspect that algos are being turned off today and that’s going to make market moves tough to read.

This article was written by Adam Button at www.forexlive.com.