Gold futures fell more than $100 on Wednesday, one of the steepest falls ever, as strong US economic data and expectations of more Federal Reserve stimulus accelerated profit taking from the safe-haven record high of a day ago. Selling spiralled out of control as money managers competed to liquidate positions in COMEX futures, which experienced their biggest single-day dollar loss since 1980. Volume looked like a record.
The price of gold bullion is now more than $150 below Tuesday's all time high of $1,911.46 an ounce, downed by intense speculation about whether the Fed will announce new plans to ease monetary policy at a meeting late this week. Spot gold was down 4.1 percent to $1,754.59 an ounce by 3:37 pm EDT, off its session low of $1,749.39. Before gold began recoiing Tuesday from above $1,900, it had risen nearly 9 percent over six sessions. US gold futures for December delivery settled down $104 at $1,757.30 an ounce.
Reuters data showed that is the biggest price drop of the continuous, front-month contract since January 22, 1980, when it tumbled almost $150. On a percentage basis, it was the steepest fall since December 2008, during the financial crisis. COMEX futures volume topped 430,000 lots, on pace to surpass a record from August 9, preliminary Reuters data showed. Silver dropped 5.9 percent to $39.34 an ounce. Spot platinum dropped 2.8 percent to $1,805.49 an ounce, and palladium fell 1.5 percent to $745.28 an ounce.