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Thursday, August 25, 2011

Gold plunges 10% from its record high as 'safe haven' takes a battering - 25th Aug 2011

Gold has dropped by a hefty 10 per cent in three days from its record high of $1,913 but experts still expect the precious metal to top $2,000 this year.

Bullion continued its slide down $48 to $1,712 at midday.

The sell-off arrived as investors bought back into shares on better than expected US economic data and took profits on gold after its meteoric rise over the past six weeks.

But many traders still believe that gold can still hit a $2,000 target this year.

That optimism has led major banks to raise their targets this week. BNP Paribas raised its gold forecast yesterday to an average of $2,080 for 2012 and UBS has lifted its three-month outlook to $2,100. Read More