The reason for the surprising market break was a huge and unlimited selling order by an unknown seller. As a result, the supply-side exceeded demand many times over which the led to the price decrease. The fact that the above described seller wave amounted to 10% of the daily trading volume is also explaining why demand could not meet supply at that point of time.
In the later afternoon the gold market stabilized again.
An important event, with respect to the gold price prognosis this week, will certainly be the American labour market figures. Should they lie above expectation and lead to further “Tapering-Measures” by the FED, the gold price is likely to decrease further.
However, a reliable survey which was realized and provided by Bloomberg predicts rising gold prices. The survey investigates future market behavior with the help of numerous real-time traders that bet 18 to 2 that the gold market will be bullish in the nearest future and will therefore lead to rising prices. This is an overall promising sign for all who now decide to invest in gold.