{"id":21873,"date":"2012-03-01T03:08:00","date_gmt":"2012-03-01T03:08:00","guid":{"rendered":"https:\/\/www2.thestockmarketwatch.com\/stock-market-news\/gold-prices-tumble\/21850\/"},"modified":"2012-03-01T03:08:00","modified_gmt":"2012-03-01T03:08:00","slug":"gold-prices-tumble","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/gold-prices-tumble\/21873\/","title":{"rendered":"Gold Prices Tumble"},"content":{"rendered":"<p><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"ca-pub-1408583772585547\";\n\/* SMW - News Links *\/\ngoogle_ad_slot = \"3490797620\";\ngoogle_ad_width = 468;\ngoogle_ad_height = 15;\n\/\/-->\n<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/p>\n<p><!--Ad Injection mfunc mode ad include code--><!--mfunc include_once('\/mnt\/Target01\/327806\/www.thestockmarketwatch.com\/web\/content\/stock-market-news\/wp-content\/plugins\/ad-injection\/adshow.php') --><!--\/mfunc--><\/p>\n<p><a href=\"https:\/\/thestockmarketwatch.com\/metal\/gold-price.aspx\">Gold prices<\/a> fell by 3 percent on Wednesday\u2014the biggest plunge in 2-1\/2 months as dollar gained sharply after Federal Reserve\u2019s chairman failure to offer a hint on further quantitative easing, even as job market improved, prompting funds to heavily unwind bullish bets on bullion which are dominated by dollar and boosting dollars.<\/p>\n<p><span id=\"more-21873\"><\/span><\/p>\n<p>Analysts say that although Bernanke stopped short of saying the improved job market meant a better economy ahead;\u00a0\u00a0 the silence over the quantitative easing issue was enough to send <a href=\"https:\/\/thestockmarketwatch.com\/metal\/gold-price.aspx\">gold<\/a> <a href=\"https:\/\/thestockmarketwatch.com\/markets\/commodities\/today.aspx\">futures<\/a> sharply lower.<\/p>\n<p><!--mfunc adshow_display_ad_file_v2(array('ad_random_1.txt'), array(100), array('align' => 'float right', 'clear' => '', 'margin_top' => '', 'margin_bottom' => '', 'padding_top' => '', 'padding_bottom' => ''), array(), array()) --><\/p>\n<div style=\"float:right;margin-left:5px;\"><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"ca-pub-1408583772585547\";\n\/* SMW - in News 300 *\/\ngoogle_ad_slot = \"5684630733\";\ngoogle_ad_width = 300;\ngoogle_ad_height = 250;\n\/\/-->\n<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/div>\n<p><!--\/mfunc--><\/p>\n<p>The metal plunged as much as $80 from its session high, as losses began to soar when\u00a0the dollar accelerated gains after Bernanke said the decline in U.S. unemployment rate has surprised economists.<\/p>\n<p>While the <a href=\"https:\/\/thestockmarketwatch.com\/metal\/gold-price.aspx\">Spot gold<\/a>\u00a0was shedding 4.88 percent, closing at $1,696.89 an ounce, passing its earlier two-week low of $1,707.04, U.S. <a href=\"https:\/\/thestockmarketwatch.com\/metal\/gold-price.aspx\">gold<\/a> <a href=\"https:\/\/thestockmarketwatch.com\/markets\/commodities\/today.aspx\">futures<\/a>\u00a0for April delivery plunged 5.5 percent to settle at $1,711.30 an ounce.<\/p>\n<p>Speaking to Reuters, Steve Scacalossi, director of global precious metals at TD Securities said &#8220;(Bernanke&#8217;s) statement that employment is recovering at a better-than-expected rate implies that if quantitative easing is coming, it won&#8217;t be for a while\u201d.<\/p>\n<p>Scacalossi believes that Bernanke comments hit the <a href=\"https:\/\/thestockmarketwatch.com\/metal\/gold-price.aspx\">gold prices<\/a> hard because investors had positioned very heavy bets on the metal following\u00a0 European Central Bank&#8217;s offering of low-interest three-year loans as the ECB bought more time to sort out the debt crisis.<\/p>\n<p>Richard Hastings, a macro strategist at Global Hunter Securities believes that \u201c it is possible that the Bernanke comments are designed to take out some of the inflation in the industrial and commodity side of the markets right now, since the Fed does not want inflation to creep up and threaten its ultra-low rate policy at this time.\u201d<\/p>\n<p>On Wednesday, although trading volume started out quietly, it picked strong momentum after 10 a.m. the trading also included 30,000 lots of the April contract traded in a five-minute span between 10:50 a.m. and 10:55 am EST. According to the data provided by the Reuters, total turnover was about 240,000 lots so far, arguably one of the busiest days since September 2011.<\/p>\n<p>The SPDR <a href=\"https:\/\/stockmarketwatch.com\/metal\/gold-price.aspx\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">Gold<\/a> Trust (ETF) (<a href=\"https:\/\/thestockmarketwatch.com\/stock.aspx?stock=GLD\">NYSE: GLD<\/a>) ended the day 5.30% lower at $164.29, the Market Vectors ETF Trust (<a href=\"https:\/\/thestockmarketwatch.com\/stock.aspx?stock=GDX\">NYSE: GDX<\/a>) ended the day 3.45% lower at $55.35, and the iShares Gold Trust (ETF) (<a href=\"https:\/\/thestockmarketwatch.com\/stock.aspx?stock=IAU\">NYSE: IAU<\/a>) ended the day 5.34% lower at $16.48.<\/p>\n<p>Jonathan Jossen, gold option floor trader at COMEX said that after the heavy sell off pressure was witnessed, funds were heavy buyers of December $1,500 put options as some looked to profit even as others tried to shield further downside risks in their futures.<\/p>\n<p>George Nickas, precious metals broker at INTL FCStone, said \u201cIt was a quiet, thin market which got overwhelmed with an influx of orders, creating this aberration.\u201d Nickas also added that <a href=\"https:\/\/thestockmarketwatch.com\/metal\/silver-price.aspx\">silver<\/a> too saw a sharp u-turn, after gaining almost 4% on Tuesday, but expects the stability to return soon.<\/p>\n<p>While <a href=\"https:\/\/thestockmarketwatch.com\/metal\/silver-price.aspx\">Spot silver<\/a><strong>\u00a0<\/strong>fell 5.2 percent, closing at $34.98 an ounce, Spot platinum<strong>\u00a0<\/strong>also felt the heat as it dropped 2.23 percent to $1675.99.<\/p>\n<p>The iShares <a href=\"https:\/\/thestockmarketwatch.com\/metal\/silver-price.aspx\">Silver<\/a> Trust (ETF) (<a href=\"https:\/\/thestockmarketwatch.com\/stock.aspx?stock=SLV\">NYSE: SLV<\/a>) ended the day 6.36% lower at $33.55, and the ProShares Ultra <a href=\"https:\/\/stockmarketwatch.com\/metal\/silver-price.aspx\" data-internallinksmanager029f6b8e52c=\"5\" title=\"silver price today\">Silver<\/a> (ETF) (<a href=\"https:\/\/thestockmarketwatch.com\/stock.aspx?stock=AGQ\">NYSE: AGQ<\/a>) ended the day 13.07% lower at $62.88.<\/p>\n<p>The ProShares UltraShort Silver (ETF) (<a href=\"https:\/\/thestockmarketwatch.com\/markets\/nyse\/today.aspx\">NYSE<\/a>: ZSL), which takes a short position on silver, ended the day 12.02% higher at $9.41.<\/p>\n<p>Tom Essaye, editor of the 7:00\u2019s Report, a daily commentary on equity and commodity markets and the economy, commented \u201cThe market\u2019s reaction to Bernanke\u2019s \u201cless than dovish\u201d testimony \u201cshows how much gold is linked to inflation expectations\/easy money from global central banks\u201d.<\/p>\n<p>&nbsp;<\/p>\n<p>More Posts by this author<\/p>\n<ul>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/recent-events\/business-news\/wal-mart-raises-dividend-by-9-to-1-59-per-share\/21977\"><br \/>\nWal-Mart Raises Dividend by 9% to $1.59 per share<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/recent-events\/business-news\/auto-sales-rise-to-the-highest-level-in-four-years-in-february\/21976\"><br \/>\nAuto-Sales Rise to the Highest Level in Four Years in February<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/recent-events\/business-news\/gold-prices-settle-higher-7\/21975\"><br \/>\nGold Prices Settle Higher<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/market-updates\/stocks-end-higher-sp-500-closes-above-key-technical-level\/21941\"><br \/>\nStocks End Higher; S&amp;P 500 Closes Above Key Technical Level<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/recent-events\/business-news\/gold-and-silver-prices-rebound-sharply\/21936\"><br \/>\nGold and Silver Prices Rebound Sharply<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/market-updates\/stocks-hold-on-to-gains\/21935\"><br \/>\nStocks Hold on to Gains<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/recent-events\/business-news\/jet-aviation-has-acquired-the-enterprise-jet-center\/21931\"><br \/>\nJet Aviation has acquired the Enterprise Jet Center<\/a><\/li>\n<\/ul>\n<hr>\n<table style=\"border:none;margin:0;\">\n<tr>\n<td style=\"padding:5px;vertical-align:top;\" valign=\"top\">\n<img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www2.thestockmarketwatch.com\/stock-market-news\/wp-content\/uploads\/2024\/08\/5.jpg\" alt=\"edliston\" width=\"125\" height=\"125\" class=\"photo\"><\/td>\n<td style=\"padding:5px;vertical-align:top;\" valign=\"top\">\n<div style=\"font-size:11pt;\"><b>Post Written By: Ed Liston <\/b><\/div>\n<div style=\"font-size:10pt;\">\n<p>Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.\n<\/p><\/div>\n<\/td>\n<\/tr>\n<\/table>\n<p><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"pub-1408583772585547\";\n\/* 336x280, created 7\/9\/11 *\/\ngoogle_ad_slot = \"3552319058\";\ngoogle_ad_width = 336;\ngoogle_ad_height = 280;\n\/\/-->\n<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/p>\n<div style=\"margin:5px;margin-bottom:20px;font-size:11pt;\">&laquo; <a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/\">Return to Stock Market News<\/a> &laquo; <\/div>\n","protected":false},"excerpt":{"rendered":"<p>Gold prices fell by 3 percent on Wednesday\u2014the biggest plunge in 2-1\/2 months as dollar gained sharply after Federal Reserve\u2019s [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50312,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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