[Ambassador]

Bloomberg: http://www.bloomberg.com/news/2011-0...and-wanes.html

Gold plunged in New York, heading for the biggest drop in 18 months, on speculation that financial markets may be stabilizing, eroding the appeal of the precious metal as a haven.

Bullion has tumbled more than 5 percent in two days, erasing gains in the past two weeks that sent the metal up as much as 16 percent since Aug. 5 to a record $1,917.90 an ounce yesterday. On Aug. 16,Wells Fargo & Co. said rising speculative demand from investors had pushed the market into a “bubble that is poised to burst.”

“This is liquidation from a crowded trade,” Adam Klopfenstein, a senior market strategist at MF Global Holdings Ltd. in Chicago, said in a telephone interview. “In the short run, there’s more optimism and that doesn’t bode well for gold. Investors have been using gold more as a fear barometer than a proxy for inflation.”

Gold futures for December delivery plunged $72.30, or 3.9 percent, to $1,789 an ounce at 12:11 p.m. on the Comex in New York. A close at that level would be the biggest loss since Feb. 4, 2010.

[JetePlentuara]

It was just a matter of time, I wonder if all of G Beck's TV X-viewers are in panic mode.

[CaseyFronczekHomie]

I've been thinking about how much FOX has advertised gold as Obama was gaining steam... Almost feels to me they know there was going to be a bad time for the market ahead...

[MegaJIT]

I've been thinking about how much FOX has advertised gold as Obama was gaining steam... Almost feels to me they know there was going to be a bad time for the market ahead...

I think they caused the surge with the fear the black man in the white house BS, buy Gold he is going to ruin America, and then the GOP went to work to do just that, oh I'm not to cynical.

Cantor probably sold his yesterday

[AricGoffgog]

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.

[phinno13]

Reg will have to find a new place to live. The folks are gonna have to start renting out that basement now.