Gold - Plummeting as much as $80.00, or 4.5%, to $1,708.40 per ounce

The gold price continued to tumble in late morning trading, with the April contract plummeting as much as $80.00, or 4.5%, to $1,708.40 per ounce. The decline coincided with a rally in the U.S. dollar after Fed Chairman Ben Bernanke’s testimony to Congress showed that the central bank is not close to embarking on further monetary easing (QE3).

Today’s drop in gold futures marked the gold worst day since September 23, 2011 – when it tumbled 4.7%.
Commenting on the sell-off, CIBC World Markets wrote in a note to clients that “Gold – looks like a large seller of gold in the market. a 10k contract traded, down ticked the price by $40/oz. roughly 200k contracts trade per day, but unusual to see such a large single trade. not likely due to contract expiry either. That transaction represents 1mln oz of gold.”

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