Gold tumbles to $1220, lowest since June; down 6% over the week

The sell-off in gold continued during the American session. The price of the ounce troy collapsed falling almost $40 during the last hours. It bottomed recently at $1218, the lowest levels since June. 

The decline took place amid a stronger US dollar in the market but volatility in gold prices is much higher that most assets across financial markets. Expectations about a rate hike in December from the Federal Reserve and rising equity prices contribute to the sell-off. 

A dramatic reversal

Trump’s victory initially triggered a sharp rally in gold that peaked above $1330. From those highs, it has fallen more than $100 in less than three days. From the level it had a week ago, the ounce dropped 6%, having the worst weekly performance in months.