The continued volatility of gold was on stark display this week, as the yellow metal’s price dropped more than $70 on Feb. 29 before rebounding slightly on March 1.
On Feb. 29, the metal dropped from a high of $1,792 to a low of $1,686, before closing at $1,709. Analysts called it the metal’s biggest one-day drop since September, and its biggest percentage drop in more than three years.
Most believed the sell-off was a reaction to Federal Reserve chairman Ben Bernanke’s comments that he didn’t see the need for more qualitative easing. Others suggested hedge funds may have left the market.
On March 1, the metal rebounded slightly, closing at $1,721. At press time, it was trading at $1,711 an ounce.
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