“Gold plunged for the second straight day Monday, dropping more than 8% at midday in what was shaping up as the metal’s biggest one-day percentage decline in 30 years.
Gold for April delivery, the front-month contract, was down 8.6% at $1,372.10 a troy ounce on the Comex division of the New York Mercantile Exchange at midday in New York, its lowest price in more than two years.
Trading volume hit an all-time high, exceeding 590,000 contracts. The previous record was 486,315 contracts set Nov. 28, 2012, according to CME Group Inc., which owns the Comex.
The latest selloff came after China registered weaker-than-expected growth, stoking concerns that consumers there and in India—the world’s two biggest buyers—may slow their purchases.
“The biggest story on global financial markets today is the collapse of gold and silver prices. Gold is down more than $90 an ounce since Friday – a fall of about 7 percent. The price drop comes on top of last week’s 4.7 percent tumble. Silver prices tumbled 8 percent, or $24 an ounce. Copper is also falling. The reasons for the plunge are linked to the recent rise in the stock market, the slow, steady improvement of the US economy and the recent strength of the dollar. Crude oil futures have tumbled on global markets, down to less than $89 for West Texas crude, the lowest price since December, 2012. For years gold bugs have predicted economic apocalypse with hyper-inflation and a collapse of stock prices. That simply hasn’t happened, and many investors have given up on gold, shifting funds out of precious metals. Last week Goldman Sachs issued a report, predicting gold prices would tumble. More volatility is expected in the days to come.