Once again gold is trading near multi year lows. Market participants associate the slump with a large seller who came into the market.
On Friday, gold plunged to $1,051 per ounce. At 4 p.m. Moscow time a big seller appeared on the market and traded over 18,000 December contracts for nearly $1.9 billion. The market reacted to this immediately and the price sank by 10 dollars.
Therefore, the gold market remains in rather difficult situation. Back in spring, the World Gold Council reported that half of gold producers experience losses when the price is below $1,200 per ounce while some estimate the production cost of a troy ounce at $1,300. Nowadays, gold producing companies continue to operate at a loss and are bound to accumulate their debt burden.
