VOA慢速英语：亚洲交易市场金价创五年最低

The price of gold fell to its lowest level in five years intrading early Monday. For a time, gold was selling atless than 1,100 dollars an ounce on Asian markets.

Some traders are calling the price drop a “mini flashcrash.” Thirty billion dollars in short selling took placewithin half an hour during what are known as “stop-loss” selloffs. Traders executed sell orders when goldprices reached targets set by investors.

FILE - Gold bars are displayed at a gold jewelry shop in the northern Indian city of Chandigarh. (REUTERS/Ajay Verma )

Luke Chua is sales and operations manager at BullionStar, a Singapore business that sells gold and otherprecious metals.

“In the physical market, this would not be possiblebecause that would consume a whole lot of physicalgold. But in the futures market, because it’s all digitalas long as you find a buyer to bid for it, then that wouldbe possible.”

The short selling reportedly began at the Singapore Gold Exchange. Goldtrading also quickly increased on China’s Shanghai exchange. Financial newsagencies reported on the sales in Shanghai.

A desire to sell gold appeared to have been worsened by thinking thatconcerns about the Greek economy have somewhat eased. There alsoappeared to be an easing of investors’ concerns about the Chinese stockmarkets.

Some observers were wondering about China’s possible involvement in theshort-selling of gold Monday. China is the world’s largest producer of gold. OnFriday, the country said its supplies had increased by 59 percent to 1,658 tonsas of the end of June.

Trader Luke Chua in Singapore says that should have driven up the price.

“But that’s not what we’re seeing in the market these few days. And thereason for that is because, currently, the price levels that we’re seeing in themarket, is heavily driven by the futures market and not the physical market.”

Some observers note China’s increase in gold reserves was smaller thanexpected. But they admit that does not fully explain the intense speculativetrading early Monday morning.

Gold prices are now six percent lower compared to prices one year ago.

Metals traders say they expect gold prices to remain around the current level.They also could move still lower because of possible action by the UnitedStates Federal Reserve. The U.S. central bank is expected to increaseinterest rates later this year. That would lead many investors to take theirmoney out of gold and other metals and to buy U.S. government bondsinstead.

I’m Bob Doughty.

Steve Herman reported this story for VOA. George Grow adapted it for VOALearning English. Mario Ritter was the editor.

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Words in This Story

flash– adj. relating to something that appears, moves or passes very quickly

short selling–n. a kind of trade in which an investor makes a profit by sellingan asset at a higher price and buying it back at a lower price

precious– adj. worth a lot of money; valuable

consume – adj. to use; to destroy something with fire

digital – adj. relating to computer technology

reserves – n. supplies of something