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Gold slides 4%, near 3-year low as Wall Street rallies

Discussion in 'Technical Analysis' started by harreymartin, Jun 27, 2013.

  1. harreymartin

    harreymartin New Member

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    Bullion tumbled again even after the US government slashed its estimate for first-quarter economic growth, which made investors less worried that the Federal Reserve would move soon to end its US economic stimulus.

    Gold tumbled 4 percent on Wednesday, taking it near a three-year low as a rallying US equity markets further cut into demand for bullion as a hedge against economic uncertainty.

    Silver dropped 5 percent and platinum group metals also declined sharply.

    Bullion tumbled again even after the US government slashed its estimate for first-quarter economic growth, which made investors less worried that the Federal Reserve would move soon to end its US economic stimulus.

    Bullion has slid around USD 125 an ounce in four sessions since the Fed signalled it plans to wind down the era of easy money. With two trading days left in the second quarter, gold was down 23 percent for the period, on course for its biggest quarterly decline since Reuters began tracking gold prices in 1968.

    "We bought gold for two reasons: because we were worried about the inflationary impact of policy and because we thought the financial system was going to fall apart," said Sean Corrigan, chief investment strategist at Diapason Commodities Management.

    Read more: http://goarticles.com/article/Gold-Slides-4-Near-3-Year-Low-As-Wall-Street-Rallies/7709282/
     
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