Gold Down: Outperforms Commodity Sell-Off

Reuters reported the drop in the price of gold, down 0.7 percent to $1,757.69 an ounce, outperforming declining crude oil and grain markets due to the U.S. Federal Reserve’s monetary stimulus uncertainty.

As quoted in the report:

The metal, a traditional inflation hedge, was down less than 1 percent even though oil plunged more than $5 in a few minutes on Monday afternoon in a rapid selloff and grain prices led by soybean futures slid.

Zachary Oxman, portfolio manager at futures brokerage TrendMax, commented:

Despite large-scale commodities liquidation, gold is supported in the high $1,700 range in a flight to quality.

This suggests there is a worry that inflation and devaluation of currencies due to central-bank actions are problematic.

Click here to read the full Reuters report.