Gold Is A Victim Of Forced Selling & Could Present An Excellent Buying Opportunity

Gold has been a victim of the ‘dash for cash’ as traders and investors receive margin calls and are forced to liquidate assets and raise cash. As a result the yellow metal is oversold and it looks to be a buying opportunity for long-term investors.

Despite its recent dip, gold is still up more than 19% this year, and given that the FTSE, DOW, S&P 500, Nikkei, SSE Composite, NASDAQ and Russell 2000 are all in negative territory, it’s logical that traders are selling their paper gold in order to cover losses elsewhere.

As the chart above shows, the CCI is indicating that gold is oversold and since none of the factors that are driving gold have changed, this latest selloff could present an excellent buying opportunity for those that understand what’s really happening.

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