Gold Price Today : Gold Extends Biggest Slump in 18 Months Futures rose as much as 18 percent this month, touching an all-time high of $1,917.90 an ounce on Aug. 23, before erasing most of the gains. The value of a 100-ounce futures contract in New York plunged $10,400 yesterday, more than the $7,425 margin requirement that day, prompting exchange-owner CME Group Inc. to increase the minimum cash deposit on trades.
“It looks nasty, but this is a normal correction given the magnitude of the move,” Matt Zeman, a strategist at Kingsview Financial in Chicago, said in a telephone interview. “The parabolic move finally collapsed.”
Gold futures for December delivery fell $16.10, or 0.9 percent, to $1,741.20 at 11:57 a.m. on the Comex in New York. A close at that price would leave the most-active contract down 8 percent since Aug. 22, the biggest three-day slump since October 2008. In London, gold for immediate delivery was down $18.27, or 1 percent, at $1,741.05.
The metal is in the 11th year of a bull market, the longest winning streak since at least 1920 in London, as investors seek to diversify away from equities and some currencies. Central banks are adding to reserves for the first time in a generation, joining billionaire investors including John Paulson in hoarding bullion. The Federal Reserve has taken the unprecedented step of saying it will keep borrowing costs at almost zero percent at least through mid-2013 to support the economy. Read More
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