Gold prices are dropping

A falling knife you don't want to catch? That's what one columnist says.

By Kim Peterson Dec 11, 2009 3:35PM
© Stockbyte/SuperStockGold is backing off of the new high of $1,200 an ounce reached in the last few weeks.

Now, the metal's price has dropped to about $1,115 an ounce. One columnist, Timothy Middleton, cautions against buying until this free fall is over with.

"There is something akin to panic going on in the gold market," Middleton writes on True/Slant. As evidence, he points to the selloff in SPDR Gold Trust (GLD), an exchange-traded fund backed by gold.

SPDR said its holdings fell more than 13 tonnes in one day, marking was the largest one-day drop in about five months.

"A sliding price in gold could become a rout," Middleton writes. The free-fall could end just below $1,100.

Tags: gold
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