Market Extra: Gold touches lowest price in nearly 3 weeks

Gold futures on Tuesday decline for a second session in a row to touch the lowest intraday price in almost three weeks.

David Gray/AFP via Getty Images

Gold futures were likely Tuesday to notch back-to-back session losses, touching the lowest intraday price in almost three weeks. In Tuesday dealings, gold for December delivery
GCZ23,
-0.90%

GC00,
-0.90%
fell $19.10, or 1%, to $1,969.50 an ounce on Comex. It traded as low as $1,962.80 during the session, the lowest intraday level for a most-active contract since Oct. 19, according to FactSet data.

“While gold has dropped last few sessions, it’s important to note that October finished with new all-time record monthly closes for gold priced in dollars, in euros, yuan, yen, U.K. pounds and in most other major currencies,” Adrian Ash, director of research at BullionVault, told MarketWatch, To get prices to those levels, “it took a surge of bullish speculation in Comex futures and options, the second fastest jump on current data, flipping from net short before Hamas’ dreadful attacks in Israel,” he said. “But the price jump also left the physical market struggling to digest these higher levels, and most investment markets actually [saw] profit-taking rather than any kind of ‘gold rush’.” Ash said private investors as a group have used the latest monthly record highs to take profits and rebalance their position overall. BullionVault users as a group sold 67.2% more gold than bought on average each day last month, with net selling totaling 470 kilograms in October — the “heaviest one-month liquidation since June 2019,” he said.

BullionVault’s Gold Investor Index reveals an October decline.

BullionVault, LBMA

BullionVault’s Gold Investor Index, which it describes as “a unique measure of actual trading behavior among the world’s largest single pool of private investors in physical precious metals” was down down by 1.4 points to 51.8 in October, t …

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