DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - Gold bubble bursting? Biggest one-day price drop since 1980 sends investors scurrying

**AricGoffgog** · 08-25-2011, 05:27 AM

WSJ: http://online.wsj.com/article/SB1000...132297710.html

Gold's glittering rise came to an abrupt halt on Wednesday as investors piled out of the metal, driving prices down 5.6%.The decline lopped $104.20 off the price of a troy ounce, pushing it down to $1,754.10. It marked a dramatic reversal after weeks of gains.

The slump began in early trading, and selling accelerated quickly as volume spiked. Ominously, in some people's opinions, the move came amid very little obviously negative news. That underscored for many analysts and investors how quickly sentiment can turn and how rapidly money can be siphoned out of the market.

Investors were already nervous early Wednesday, after a 1.6% drop on Tuesday. Some headlines that could be seen as bearish for gold appeared, including the news that U.S. durable-goods orders were slightly better than some analysts expected. Signs of economic stability could undermine some investors' desire to hold gold as insurance against uncertainty.

While many investors were hoping for a swift return to the upward trend, prices sank in early trading, then picked up speed. In less than 45 minutes starting at 9:40 a.m., gold dropped as much as $70.60 an ounce, a 3.8% decline.

08-25-2011, 05:27 AM	#5
AricGoffgog Join Date Nov 2005 Posts 445 Senior Member	WSJ: http://online.wsj.com/article/SB1000...132297710.html Gold's glittering rise came to an abrupt halt on Wednesday as investors piled out of the metal, driving prices down 5.6%.The decline lopped $104.20 off the price of a troy ounce, pushing it down to $1,754.10. It marked a dramatic reversal after weeks of gains. The slump began in early trading, and selling accelerated quickly as volume spiked. Ominously, in some people's opinions, the move came amid very little obviously negative news. That underscored for many analysts and investors how quickly sentiment can turn and how rapidly money can be siphoned out of the market. Investors were already nervous early Wednesday, after a 1.6% drop on Tuesday. Some headlines that could be seen as bearish for gold appeared, including the news that U.S. durable-goods orders were slightly better than some analysts expected. Signs of economic stability could undermine some investors' desire to hold gold as insurance against uncertainty. While many investors were hoping for a swift return to the upward trend, prices sank in early trading, then picked up speed. In less than 45 minutes starting at 9:40 a.m., gold dropped as much as $70.60 an ounce, a 3.8% decline.
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