by Christopher Freeburn | June 26, 2013 4:33 pm
Gold dropped sharply in Wednesday trading as investors contemplated the likely winding down of Federal Reserve stimulus efforts this year.
As the Fed slows its monthly bond-buying, the risk of rapid inflation dissipates, diminishing the precious metal’s appeal as a safe haven investment. Gold has fallen almost 23% during the current calendar quarter and nearly 40% since its September 2011 record high.
Gold futures for July delivery dropped 3.6% to $1,229.60 per ounce on Wednesday, according to CME Group. Gold traded as high as $1,276.20 and as low as $1,223.20. Gold bullion closed in London at $1,228, according to BullionVault.
Silver futures for July delivery plunged 4.8% to $18.59 per ounce. Wednesday’s high for silver was $19.58 while the low was $18.36.
Gold and silver funds declined in Wednesday trading.
Gold and silver mining ETFs retreated during the day.
Gold mining shares sank on Wednesday.
Silver mining shares slumped during the day.
As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault contributed to this report.
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