Breaking Finance News

Gold Getting Crushed Thursday Morning

On the back of a global market selloff, gold is down more than $80–about 6 percent in Thursday morning trading. It currently sits at $1,291. The selloff accelerated around 2:45 a.m. EST as global markets reacted to Fed Chairman Ben Bernanke’s comments that the Federal Reserve will likely begin tapering its bond-buying program later this year in response to what is an improving U.S. economy.

Gold and silver were down more than other asset classes but oil was down more than 1 percent and agricultural commodity futures were all down as well.

Equity markets were down between 1 and 2 percent. Asia markets closed down with the Nikkei shedding about 1.7 percent. The Hang Seng saw the most severe selloff–down more than 2.8 percent.

The Japanese yen was weaker against the dollar which likely muted the Japanese response to the global market selloff. The yen currently sits at 97.75 against the dollar–weaker by 1.34 percent.

U.S. equity futures were all down about 1 percent.

There was very little leadership over night as investors elected to sell first and digest the fed news later. Markets will look to the United States for leadership today. U.S. markets flushed out panic sellers on Wednesday following the Fed announcement. Futures are pointing to some follow-thru selling but world markets will want to see a muted response from U.S. markets today.

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