Once again gold and silver are nearing 4 year lows as the US dollar continues to rally. Where will this sell off bottom? Gold has officially breached its $1,180 key support level and it looks like the next stop could be $1,000. Silver is nearing $16 and is also looking to go lower.
Gold, silver tumble to 4-year lows on rocketing dollar
Gold and silver slumped to their lowest since 2010 on Friday as the dollar surged against the yen and other major currencies after the Bank of Japan shocked global financial markets by expanding its massive stimulus spending.
Spot gold broke below $1,180 an ounce, a level bullion had held twice during its last two major sell-offs in June and December last year. It also briefly held the mark earlier this month until Friday's drop.
The yen plunged to a near seven-year low against the U.S. dollar on Friday, putting it on track for its worst day in 18 months, after the Bank of Japan shocked financial markets with an aggressive easing of its monetary policy.
"The main reason for gold's fall is the strength in the dollar after the BOJ's desperate efforts to weaken the yen," said Jeffrey Sica, president and chief investment officer at Sica Wealth Management, which oversees $1 billion in client assets.