Gold continued to fall today following yesterday’s decline of more than $100 to mark its largest single-day decline in nearly two years. Speculation that the Federal Reserve will announce further stimulus plans convinced many to take profits before the end of the two-day Fed conference in Jackson Hole, Wyoming.
Shortly after 1 p.m. in London today, gold was down another 3 percent to $1,704.25 an ounce. This marks a 10 percent decline for gold in the past three days.
“Gold is a trade, gold is a position, gold is volatile, but gold is not safe,” economist Dennis Gartman wrote today in his Suffolk, Virginia-based Gartman Letter. “The public is involved in gold, and the cab drivers of the world have bought into it. Now they are being taken out, at high cost.”
Source: Bloomberg