Squashing the gold bugs

The steepness of gold’s decline has taken investors by surprise, but there’s still plenty of potential overhang in the yellow metal's market.

Over the past fortnight the gold price has had its second precipitous fall this year, taking its decline since the start of April towards 25 per cent. As is now the case across most financial markets, the blame lies with the Fed.

The price first plunged in early April, diving from around $US1600 an ounce to around $US130 an ounce. After stabilising around the $US1400 an ounce level, over the past fortnight it has tumbled again, this time to below $US1250 an ounce.


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