It was a painful day for precious metals investors.
During overnight trading, in the futures market, gold was sold off heavily. In a matter of minutes, the gold price fell from $1,130 to $1,080, a drop of 4.4%, only to recover shortly after.
Volume for the day was higher than average, but not extremely high as during the sell off in April and June of 2013.
The gold price drop is clearly the result of an ultra-bearish sentiment vis-à-vis gold. Meantime, with the ongoing gold price meltdown, gold is trading at its lowest level in more than five years.
It is no coincidence that gold is selling off amid a strong U.S. dollar rebound. The dollar index is close to touch the psychologically important 100 level.