Even after the recent selloff, gold volatility remains lower than some might have expected. But there's a good reason why.
Gold started the Wednesday session lower, after ending Tuesday on its lows. During the Tuesday session, gold initially hit a low of $1,278.10, finding our next support level dead-on. But later trading became choppy, with gold hitting $1,272.50 before recovering, and then again swinging to new lows at $1,271.80.
After two Fed presidents hinted on Tuesday that they believe we will see tapering before the end of the year, and possibly as early as September, gold's path of least resistance has been to the downside.