Gold prices recorded the biggest ever fall to hit one-year low on frantic selling by stockists amid a steep fall in overseas markets. Gold suffering such a biggest single day fall is never seen before and may lose more ground in coming days mostly influenced by speculative selling in futures markets.Gold in New york, tumbled to the lowest since July 2011 on signs that investors are favouring the dollar and equities as the global economy recovers.The price of gold futures for June delivery finished the week at $1,487, down $78 an ounce. It's the lowest close of the precious metal since it peaked at $1,889 in August 2011. Gold has been falling steadily since its peak at about $1,900 an ounce in September 2011. Early reports said much of the selling Friday was tripped by stop-loss orders, which are directions to sell an asset when the price reaches a specific point. Clusters of stop-loss orders near a specific price will often cause a cascade of selling as each order is tripped and brokers dump their holdings.
3 years ago