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Gold plunges to 2-1/2 year low post Bernanke

June 20, 2013: 2:53 PM ET

Gold prices were hit hard in the global market rout that followed Ben Bernanke's latest press conference.

Gold futures fell 6.4% to settle at $1,285.9 an ounce -- its lowest level since September 2010.

The drop extended an ongoing sell-off in the precious metal as investors prepare for an end of the Federal Reserve's stimulus policies, which Bernanke said could begin later this year and culminate in 2014.

Of course, he also said the Fed could do the opposite if the economy takes a turn for the worse.

But that seemed to be lost on the market.

Bernanke, and his facial hair, was the main topic of conversation among gold traders on StockTwits.

MrTurnip
Look at all the fear a bearded academic can cause $SPY $GLD

Well said Mr. Turnip. But isn't this a little insane?

investinthebest
$GLD god damn this is insane

So what could Bernanke have possibly said to cause such insanity? Did the bearded academic proclaim that stocks, bonds and gold are all worthless as of Thursday?

coopervegas
@MCGtRAYding this is just 'hey we might taper soon, image $GLD months into the taper & 10yr at 4.5%

That's it? "Hey we might taper soon."

There has to be more to it than that. Maybe something important like inflation, or the lack thereof?

scheplick
Disinflation could also explain the breakdown in gold $GLD.

That's an interesting theory. But the TV says we should still buy gold.

RogerHammer
$GLD - i love how they're still pumping gold through commercials on fox news - been losing people money for 20 straight months!

So how much lower can gold go? What's the consensus here?

theworldisnotenough
$GLD I know that the consensus is for a down move to around 1230-1250. But I wouldn't be surprised to see this reach 1178

Yikes. That doesn't sound good.

Doctor_S
$GLD who's brave enough to buy the Bernanke gap?

Funny you should ask. Lucky Crystal is socking it away for a rainy day.

Lucky_Crystal
$GLD loaded up on gold, but 1/8 of my portfolio LONG, won't look at it till a few years

Not looking at it for a few years is probably a good idea. Any other takers?

Joeblack
$GLD more downside to 1227, then go LONG, and wait patiently.

Patience, in this market? Good luck with that.

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Ben Rooney
Ben Rooney
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Ben Rooney is a staff writer for CNNMoney. He covers the European debt crisis and other international finance stories, in addition to writing about stocks, bonds, investing and other Wall Street-related news. Follow Ben on Twitter: @ben_rooney

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