- Gold futures fell on Monday to their lowest levels since early August.
- The loss comes despite a mixed session for stocks and a declining U.S. dollar.
- Federal Reserve Chairman Jerome Powell will testify before Congress on Wednesday and Thursday.
The price of gold declined on Monday, as technical traders piled increased their short positions following last week’s brutal selloff.
Gold Extends Slide; Silver Follows
Futures on December gold deliveries fell to a session low of $1,448.90 a troy ounce, putting bullion on track for its worst settlement in nearly three-and-a-half months. The most actively traded futures contract was last down $5.70, or 0.4%, at $1,457.20 a troy ounce on the Comex division of the New York Mercantile Exchange.
Gold is trading at its lowest level since early August. | Chart: Bloomberg
Bullion is down in five of the last seven trading sessions; over that stretch, it has declined 3.8%.
Silver futures were also under pressure at the start of the week; the December contract was off by as much as 1.1%. The contract was last down 2 cents, or 01%, at $16.80 a troy ounce.
Gold was off by as much as 0.9% on Monday after chart-based sellers entered the futures market following last week’s massive selloff. As Kitco reports, gold’s biggest weekly slide in three years invited a wave of bearish traders into the market. Combined, they likely pushed prices “into pre-placed sell stop orders that were triggered when prices fell below last week’s low.”
In another article, Kitco describes $1,450 as gold’s immediate price floor. Any sustained drop below this level could ignite a fresh wave of selling,