Gold prices fell 10 percent in just two days as investors decide that the economy may be…improving.
Over the past two trading days, gold futures prices plummeted over $200 per ounce, the largest dollar-based drop since trading began in the U.S. in 1974. On percentage terms, prices fell almost 10 percent, a 30-year record in itself. Gold is considered a safe haven investment where people and institutions park their capital when economic conditions are unstable. Gold has also been a way to store value for thousands of years, and that is unlikely to change. Over the past eight years, gold prices have soared, given the U.S. financial crisis, real-estate bust, European economic turmoil and other global problems that made conditions unstable. But investors have grown tired of low returns and their appetite for risk is increasing. As a result, money has been shifting away from safe assets like gold into riskier assets like the stock market. The past few months have seen gold prices go down and the stock market soar. Since no one wants to be the last investor holding an asset, several technical and fundamental triggers let investors into a sell-off over Friday and Monday.
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