Gold Prices Today Bouncing Back Along With Silver ETFs

Gold prices today are bouncing back a little this morning by about one percent after the plummeting values on Friday and Monday. This includes many commodities, from gold-based exchange-traded funds (ETFs) to silver, platinum, and oil.

As previously reported by The Inquisitr, gold prices were in free fall on April 15, slipping under $1,600 down all the way to $1,4000 from a previous high of over $1,900.

Gold prices today are down nearly 6.3 percent from yesterday, hovering around $1,350 an ounce. This 28 percent drop from gold’s all-time high of $1,895 on September 5 is the biggest two-day drop for gold in 30 years. The last time we saw such a big one-time gold crash was 30 years ago, back in 1983.

The gold ETFs were of course hurt along with the raw commodities. SPDR Gold Shares crashed nearly nine percent on Monday as more than 90 million shares traded hands, which exceeded the previous volume record of 79.2 million shares set on December 4, 2009.

So what was the trigger for this gold sell-off panic? One suspect is Goldman Sachs, which advised its clients to short gold, predicting it would fall to $1,450 an ounce by the end of the year. This spooked investors right when several other world altering events were taking place.

Speculation that Cyprus would sell about 85 percent of its 13.9 metric tons of gold holdings, or $525 million in gold, caused many investors to wonder if other European countries could follow suit.

The Federal Reserve’s most recent meeting showed they’re considering putting an early ending to its quantitative easing program, which would take away $85 billion a month in bond purchases. If QE4 ends then gold prices would suffer.

But it’s not like gold was specially targeted. All commodities, including crude oil, silver, copper, and wheat, were all down at the same time, which just pushed the downward cycle further.

While gold prices today are up a little over one percent, do you think we’re in a bearish downward trend or is this just a good gold buying opportunity?