Gold Prices Drop as Investors Throw in Towel

Analysts cite a strengthening economy, dollar for the decline in precious metals.

Gold, there’s a dramatic drop on Friday, and today gold is at its lowest point since March of 2011. What’s going on?

Yeah, there seems to be a bit of give-up(抛弃) here in the gold market. The gold had a phenomenal rally(反弹) in last 12 years really. But it’s struggled in the past 6 months or so, and I think the fact that it, it wasn’t able to gain more attraction even with the Fed doing quantitative easing, and another Bank of Japan, doing quantitative easing, which in theory, would stimulate inflation. The inflation is not taking hold, and a lot of, I think a lot of speculative investors who bid in(故意出高价以便买得) gold are throwing in the towel(认输), giving up and that is feeding on itself right here. It’s, honestly, it’s getting kinda ugly for gold, and maybe we’re gonna till the end to sell off, but it’s not pretty right now.

So is it officially in a bear market(空头市场) and will affect other industries?

Yes, it’s officially in a bear market - as of this morning down more than 27% from its all time high. You know, it affects other industries and I think again the tide is back to the story, the broader story for the commodities, selling off amid fears that China’s economy is slowing, the US economy, you know, we’re doing it okey, but not great, Europe’s a basket case, Japan, they’re trying to get off the mess, so where’s the growth, where’s the great story that’s gonna drive the demand for commodities, maybe it’s Brazil, maybe it’s India, but there’s not enough there to really spur the kind of demand you need to get the prices moving higher from here.