Market Outlook: Gold volatility spikes as prices reverse from record highs
BNN Bloomberg
Gold prices plunged after hitting record highs, falling back below US$5,000 an ounce as volatility surged and investors reassessed the outlook.
BNN Bloomberg spoke with Christopher Louney, director of natural gas and gold strategy at RBC Capital Markets, about what drove the sudden selloff, how investors should interpret the pullback and why the broader macro backdrop may still support gold later this year.
Read the full transcript below:
ANDREW: Gold rose and then crashed. Last week, it blasted through US$5,500 an ounce for the first time, then slumped on Friday. Our guest says dropping below US$5,000 on the way down may not be as big a deal as it was on the way up, but the fact this all happened in a single week is important. We’re joined by Christopher Louney, natural gas and gold strategist at RBC Capital Markets. Christopher, thanks very much for joining us.
CHRISTOPHER: Thank you for having me back.
ANDREW: What do you think? There were multiple reasons at play, but why do you think gold really crashed on Friday?
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