Gold futures ended the day with their lowest rate since July, as the current economic situation is proving that cash is currently king. This new two-month low follows the massive drops that gold experienced last week, as investors are in the midst of a massive gold selloff to gain cash to cover other stock losses.
Gold for December delivery GC1Z -2.05% declined $45, or 2.7%, to end at $1,594.80 an ounce on the Comex division of the New York Mercantile Exchange, the lowest settlement since July 21.
“Short term, there’s clear demand destruction in gold derivatives right now,” said Adrian Ash, head of research at BullionVault.com, in emailed comments.
CME Group late Friday raised margin requirements for some gold- , silver- and copper-futures contracts, adding pressure to metals prices Monday. Margin is money investors must put up to be able to trade and hold futures contracts. You can see that report here.
It is clear that investors had millions upon millions of dollars in gold and silver, and now both the meals are taking massive reduction hits because of the selloff.
That being said, gold and silver are still one of the best places to invest your money, as at least your money will be safe in these metals.