Gold Decouples From Treasuries, Continues Plunge

May 9, 2012 8:17 AM EDT
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Spot gold continued its selloff overnight after breaking through technical resistance at $1600/oz.

Gold closed down approximately 2 percent yesterday, piercing 4 month lows. Traders are fearful of owning Gold now that it has decoupled from longer dated US treasuries, which moved up yesterday, with yields nearing all time lows. The decoupling signals that Gold is losing its safe-haven status, at least in the short term.

Spot Gold is trading near $1585/oz. GLD, the popular Gold ETF (NYSE: GLD), trades at154.15 in pre-market trading.

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