Wednesday, August 24, 2011
Gold drops $150 in two days
After briefly topping $1900 an ounce on Monday, gold has dropped steadily for the past two days, closing at $1754 [right]. Silver has taken a proportional price hit as well.
But copper, the lifeblood of Arizona's mineral industry, has been hovering pretty steadily around $4 per pound, plus or minus a few cents. Copper is more indicative of global industrial activity, rather than as a currency hedge.
Some pundits were predicting gold rocketing to $2000 or more due to economic uncertainties, but others have been warning of a market correction. So, is this a correction, or response to positive developments in the economic sector?