Gold’s $80 Swing Following Swiss Gold Referendum Surprises Traders
Though gold is trading below the key $1,200 level, Tom Vitiello says that the pullback is pretty much expected as the yellow metal bounced $80 of the lows yesterday.
Even though gold is trading just a touch below the key $1,200 level, Tom Vitiello of Aurum Options Strategies says the pullback is pretty much expected as the yellow metal bounced $80 of the lows yesterday. Vitiello explains that not only is $1,200 a big number but it is where gold closed the end of the year for 2013 at $1,206. Part of the $80 move lower was due to the Swiss gold referendum on November 30 and the fact that the market was so illiquid on the overnight, but the real surprise was surge in the bounce back. A lot of the Swiss vote was priced into the market so it was difficult to read, especially since the low of $1,130 a few weeks ago was never breached.
