CBNC reported the drop in the price of gold futures, down to $1,612 an ounce, as low volumes incdicated that investors were skeptical about the central banks taking action to boost economies.
As quoted in the report:
Volume in U.S. gold futures was poised to end below its 30-day average. Traders said last week’s mixed U.S. nonfarm payrolls report fed uncertainty about whether the Federal Reserve will come through with more monetary stimulus — which would encourage gold buying — or whether the central bank would refrain from action, which could spur selling.
David Meger, director of metals trading at futures brokerage Vision Financial Markets, commented:
Nobody really wants to step in front of the market and be a seller yet as the Fed seemingly just kicks the QE can down the road.
