Stocks are falling fast today, but gold is falling even faster. Gold prices have dipped 3% to $1,620 an ounce on today – its lowest level since early January.
Gold prices appear to be riding the downward coattails of U.S. and European stocks, all of which have fallen sharply today. The catalyst behind the decline of U.S. stocks was yesterday’s release of the recent Federal Reserve minutes. Those minutes revealed that a third round of quantitative easing for the sake of kick-starting the economy is unlikely to occur anytime soon.
In response, the Dow Jones Industrial Average is down 149 points, or 1.1%, this afternoon. The S&P 500 has fallen 1.2%, while the Nasdaq has plummeted a whopping 1.75%.
But nothing is falling faster than gold. Not that wild swings in the price of gold is anything new.
Gold prices nearly reached $1,800 an ounce in mid-November only to come crashing back to $1,540 an ounce by late December. By late February, just two months later, gold had risen close to $250, to $1,787 an ounce. Since then it’s down 9%, including today’s losses.
Silver prices are down even bigger today, declining 6.6% to $31.04 an ounce.