Gold marked its 10th straight day of losses Wednesday, in the longest losing streak for the precious metal in almost 20 years. And some traders say the collapse isn’t over, yet.
“Physical demand for gold in China is down 9 percent. Worldwide, demand for gold coins, gold bars down 17 percent this year. So you’re not getting the buyers even though the price is going lower,” said trader Anthony Grisanti on CNBC’s “Futures Now.” From August to September 1996, gold fell 13 days in a row. Gold watchers say one need only to look at the dollar to find the reason for gold’s decline.
“Cash is king in the commodity world now,” said RBC Capital Markets precious metal strategist George Gero, referring to the dollar. The dollar index is up 8 percent year-to-date. Since gold is priced in dollars, it tends to fall when the dollar rises. With inflation low and the dollar strong, Gero says gold will stay range-bound until there are signs of inflation.
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