Commodity analyst and regular CNBC guest Dennis Gartman talks about the recent gold market sell-off, citing news that Cyprus may be forced to sell its gold (and the possibility that other gold sales in European will follow) as the proximate cause.
It seems “margin clerks with sharp pencils” have also contributed to the recent decline as leveraged futures traders, mostly in the U.S., are being forced out of their positions and precious metal ETFs are likely to see more big outflows today.
Of course, lower prices has spurred buying in Asia and it should be interesting to see just how much more of the metal China, Russia, and India buy now that it’s on sale.
Source: Tim Iacono
