What happened to Gold? - 09.12.2014

Remember this guy:


CFR Board Member - Fareed Zakaria

Yeah, he told you gold was risky, then the price dropped, and it' still dropping.



UPDATE:

Gold Falls to Eight-Month Low Amid Signs of U.S. Growth
By Luzi Ann Javier  Sep 12, 2014 10:07 AM CT

Gold futures fell to the lowest in eight months as improving U.S. economic growth curbed demand for the metal as a haven asset.

Bullion has fallen 7 percent since June, heading for its first quarterly loss this year, amid signs that the U.S. recovery has regained its footing. Sales (RSTAMOM) at American retailers climbed in August at the fastest pace in four months, while consumer sentiment in September rose above the median estimate in a Bloomberg survey of economists, reports showed today.

Investor interest that pushed prices as much as 16 percent higher this year is waning as economic expansion bolsters the case for the Federal Reserve to raise interest rates, cutting the appeal of the metal as a hedge against inflation. Money mangers pared their bullish wagers on the metal for three straight weeks, while open interest in New York futures and options is near the lowest in five years.

“The hypothesis that the Fed is likely going to signal an increasingly probability of a hike is very telling,” Bart Melek, the head of commodity strategy at TD Securities in Toronto, said in a telephone interview. “Gold is not doing well.”

Bullion futures for December delivery fell 0.8 percent to $1,229.30 an ounce at 10:59 a.m. on the Comex in New York, after touching $1,228.60, the lowest for a most-active contract since Jan. 10. Prices have gained 2.3 percent in 2014.

Gold tumbled 28 percent last year, the most in three decades. The Fed reduced monthly bond purchases to $25 billion on July 30, the sixth cut of $10 billion since November. Goldman Sachs Group Inc. analysts have forecast prices will touch $1,050 in 12 months as the U.S. economy improves.

Fed policy makers will meet Sept. 16-17. Research this week from the Fed Bank of San Francisco suggested investors may be underestimating how quickly policy makers could raise rates.

Silver futures for delivery in December fell 0.3 percent to $18.54 an ounce, after dropping to $18.455, the lowest since June 2013.

here:
http://www.bloomberg.com/news/2014-09-12/gold-extends-drop-with-silver-as-platinum-sinks-to-7-month-low.html

Looks like those who listened to Ron Paul and bought Gold just lost even more money,



more here:

gold, predictions, and the real agenda - 2013 - 12.31.2013
http://globalistnews.blogspot.com/2014/03/gold-predictions-and-real-agenda-2013.html