Gold Prices are Bouncing Off Morning Lows – The U.S. Stock market is falling along with global equity markets around the world. The DOW is down over 400 points, as concerns grow over the state of the global economy. Gold and precious metal prices have been dragged down along with stock prices, although the very news driving stock prices down might be viewed as positive for gold. In most cases, when gold drops in conjunction with a precipitous drop in the DOW, it is a liquidity event. Traders are simply selling what they can to cover margin calls. Gold prices have rebounded off lows, so traders will keep a sharp eye on afternoon action, as we head into the open of the Asian markets.
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