Friday, September 23, 2011
They got yours, sucka!
Remember when the hedge funds piled into gold and drove the prices sky high? If so then you must remember all those good folks who told you to buy gold, as the prices were sky high, which helped to push the prices higher.
Gold futures for September delivery fell $66.30, or 3.7 percent, to $1,739.20 an ounce in New York. It was quite a turnabout for the metal, which has been soaring in recent months amid the turbulent stock markets.You can still look at all the pretty coins you bought.
Hedge funds, which have been ratcheting down their positions in gold futures since early August, were quickly named as the culprits in the latest sell-off.
Some traders said that hedge funds were beginning to unwind, or close out, what has been a very popular and profitable trade for the last 18 months as they bet the dollar would fall and that gold would rise. In the last month alone, the euro has fallen nearly 4 percent against the dollar amid worries about the European debt crisis.
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