Gold’s meteoric rise may now be matched by an equally stunning decline.
On April 14, just one business day after the yellow metal sank below $1,500 for the first time in two years, its spot price sank below a new benchmark—$1,400. At press time, the metal was trading at $1,369, its lowest level since February 2011.
That represents a one-day drop of more than $100, or 8.4 percent, according to goldprice.org, which would represent the metal’s biggest one day slide since 1983. The metal’s price is now down 13.54 percent for the past 30 days, and 8.96 percent for the year, according to goldprice.org.
The breathtaking plunge has sparked headlines of a “crash” and “panic selling.” Forbes declared that “Wall Street suddenly hates gold.”
Some analysts even expect further declines, with an ABN Amro commodities strategist writing in a note: “The demise of gold is still at an early stage.”
Another analyst told The Wall Street Journal: “As skeptical as we have been on bullion’s fortunes, we never expected the market to hit $1,500 so soon. In the short run, bullion’s reputation among the investor community is damaged beyond repair.”
Gold’s decline was equaled by an equally significant decline for the price of silver. At press time, its price had tumbled to $23, more than a 10 percent drop.