By Frank Tang
NEW YORK, Dec 4 (Reuters) - Gold fell more than 1 percent on Tuesday, underperforming equities and other commodities, as heavy fund liquidation and options-related selling sent bullion prices below a key technical support.
The metal hit its lowest price in nearly a month after it broke below its 100-day moving average at $1,698 an ounce, the level gold had held since mid-August. Economic uncertainty related to U.S. budget talks and bouts of heavy selling after last week's option expirations also pressured bullion, traders said.
"You cannot attribute this kind of volatility to any sudden, new fundamentals. There are obviously some large fund-, algorithmic-type players moving the market around," said Bill O'Neill, partner of commodities investment firm LOGIC Advisors.
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NEW YORK, Dec 4 (Reuters) - Gold fell more than 1 percent on Tuesday, underperforming equities and other commodities, as heavy fund liquidation and options-related selling sent bullion prices below a key technical support.
The metal hit its lowest price in nearly a month after it broke below its 100-day moving average at $1,698 an ounce, the level gold had held since mid-August. Economic uncertainty related to U.S. budget talks and bouts of heavy selling after last week's option expirations also pressured bullion, traders said.
"You cannot attribute this kind of volatility to any sudden, new fundamentals. There are obviously some large fund-, algorithmic-type players moving the market around," said Bill O'Neill, partner of commodities investment firm LOGIC Advisors.
Read Full Article>>>