Gold prices dropped sharply late yesterday and hit a 3 year low, and was trading at under $1,200 an ounce. Silver hung in and slightly down.
This coincided with Atlanta Federal reserve President Dennis Lockhart remarks, he said:
- The Fed will eventually reduce its balance sheet (winding down QE)
- No inflationary problems on the horizon
- The Fed will start looking to raise interest rates in 2015
The pre-placed sell stopped were triggered to exacerbate selling pressure, on top of that, the U.S. dollar traded at day highs.