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Gold prices drop 1%. Is $1,150 next?

June 13, 2013: 2:49 PM ET
http://i2.cdn.turner.com/money/dam/assets/130613130138-gold-prices-614xa.jpg

Gold prices dropped 1% Thursday.

U.S. stocks were able to evade the rout in Asia, but gold wasn't so lucky.

In fact, the precious metal has been one of the most jittery asset classes this year.

Gold prices plunged to a two-year low in April on worries about slowing growth in China. Investors also shunned gold in favor of stocks, which have had a record-setting run this year...before all the recent volatility.

Gold prices dropped more than 1% Thursday and currently hover around $1,377 an ounce.

Gold prices have been rocky all year.

After years of moving higher, gold prices are now down nearly 30% from all-time highs above $1,900 an ounce hit in mid-2011.

While gold bulls are often the most vociferous in their defense of the metal's enduring value, talk of a sharp fall in gold prices easily spooks investors.

skyzer
$GLD there we go: "Societe Generale Contemplates $1150 Gold, Cuts AngloGold, Randgold" Another anti-gold spam http://stks.co/qGci

Societe General's commodity analysts think gold could hit $1,150 in 2014 as investors rush out of their gold ETF holdings at a faster pace. The SPDR Gold Shares Trust fell 1% Thursday and is down nearly 18% this year.

Soc Gen's analysts said gold has been in a long-term bubble as inflation wary investors plowed into the precious metal as a hedge. Now that inflation concerns have ebbed, investors, they say, will sell out.

Other traders on StockTwits see technical reasons to bet on a gold sell-off.

MBForex
Thats the 3rd #CNBC Guest in under a 3mins to be Uber Bearish on #Gold.. Im bearish & scared now.. Just sayin $GLD http://dcl.sr/jA1

DarkPools
$SPY $GLD continues to say Fed exit. down 15 Bearish

Ah yes, lest we forget the Fed. That's what's causing all the market gyrations around the globe. The $64,000 question: When will they start tapering?

Still not all traders on StockTwits were quite as bearish.

avidchartist
$XAUUSD $GC_F $GLD Buying Gold mid year and holding til year end has been profitable in most years since 1999 http://stks.co/pGbz

As market strategist Jon Boorman notes, gold is always a hot topic.

JBoorman
So you decided to write a post about Gold. The good news: you'll get a ton of views. The bad news: you'll attract some crazies $GLD $GC_F

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Maureen Farrell
Maureen Farrell
Staff writer, CNNMoney

Maureen Farrell is a staff writer at CNNMoney and covers Wall Street, banking, mergers and the stock and bond markets. Prior to joining CNNMoney, she covered venture capital and entrepreneurs for Forbes, and mergers and bankruptcy for Mergermarket and Debtwire, both divisions of the Financial Times.

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