Gold futures fell as much as $100 to below $1,700 an ounce on signs that that the Federal Reserve will refrain from offering more monetary stimulus to bolster the U.S. economy.
In testimony before Congress today, Fed Chairman Ben S. Bernanke gave no signal that the central bank will take new steps to boost liquidity. The dollar rose as much as 0.8 percent against a basket of major currencies, eroding the appeal of the precious metal as an alternative investment. Yesterday, gold reached $1,792.70, a three-month high, even as coin sales by the U.S. mint slumped in February .
“People were expecting that the Fed would loosen policies, even if the perception is that the economy is doing well,” James Dailey, who manages $215 million at TEAM Financial Management LLC in Harrisburg, Pennsylvania, said in a telephone interview. “The investor sentiment changed as the Fed committed to nothing. This is the manic nature of the market.”
In electronic trading on the Comex in New York, gold futures for April delivery fell $90.30, or 5 percent, to $1,698.10 at 5:14 p.m., compared with yesterday’s settlement. Earlier, the price tumbled as much as $100, or 5.6 percent, to $1,688.40, the lowest for a most-active contract since Jan. 25.
The settlement at the close of floor trading was $1,711.30, down 4.3 percent, the most since Dec. 14. The price, down 1.7 percent this month, has gained 9.2 percent in 2012.
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Reached a 3 month high and lost $90 next day. That is crazy…Talk about volatility. You tell me your strategy is proofed to a $90 fall. LOL.
-Diggah
No doubt! I was glad I wasn’t able to watch the action. I might have sold my GLD.
Sure, the fucking Fed statements caused gold and silver to dump. How about outright manipulation by the PPT?
How about manipulation due to the biggest story of the decade, which is not being covered in US news, much less on this web site…
From the front page of the Tehran Times today:
http://tehrantimes.com/economy-and-business/95948-iran-says-importers-can-pay-for-oil-using-domestic-currency
People will buy it from Iran that way if they get it cheaper. Otherwise, they will buy their oil from some other source.
The only other reasonable source is Saudi Arabia and their reserves are growing low, droppping 3% per year. Most of the deals with Iran have already been cut. This includes Germany, which will purchase using Euros. China will be expanding its supply from Iran under the new agreement.
War with Iran means potential war with China, Russia, and Pakistan, who all rely on Iranian oil. Iran would be a lot tougher foe than Iraq ever was for the US.
Losing the petrodollar would be bad news bears…
I always don my tinfoil hat whilst stockpicking inside the ppt. We certainly have investing prowess but market “manipulation” is a bit much. Don’t flatter us.
Plunge Protection Team… not the PPT you were thinking of.
Don’t worry. Zero Hedge will be out with a report within the next 24 hours claiming this was based on a rumor of a margin hike and how we are still firmly on the path to the destruction of everything and your only safety is to buy something denominated in a currency that is being destroyed. All is right in the world.