Gold April futures dropped $2.10 (.02%) to $1,360.40 an ounce on the Comex division of the New York Mercantile Exchange after Egyptian President Hosni Mubarak announced his official resignation.
Now that the Egyptian riots have ceased and the protestors find themselves back at work (or soon to be) uncertainty in the global markets originating in Cairo no longer requires a financial hedge.
Once again, investors are no longer scared in the short term and therefore drop their gold positions as if the metal has not been on a 10 year bull rally. Volume from traders has been significantly lower post-resignation and therefore liquidity in the gold comex market no longer is attracting market making players.
However, uncertainly, like New England weather, can and will change very quickly...just wait until tomorrow's opening bell. The Egyptian political scene is far from stable. This movement away from gold seems a bit premature for what is the first of many rounds of reorganization in Cairo.
What will be the next story traders use to advocate a move back towards gold?
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