Gold’s violent plunge on Wednesday sent chills down the spines of investors, who ran for the exits as the yellow metal fell nearly $100 at one point. While the consensus suggests the market meltdown was a consequence of Fed Chairman Ben Bernanke’s failure to suggest QE3 is on its way, the speed and magnitude of the decline was completely unexpected. It’s up to physical buyers now, according to UBS’ Edel Tully, to show if the decade-long gold rally suffered technical damage or if the “leap-year breakdown” was a one-time event.
|