Ask an expert: What's behind gold's fall?

MSN Money's Charley Blaine discusses what caused recent fluctuations in the precious metal.

By MSN Money Partner Apr 22, 2013 9:42AM
Hundred dollar bills surrounded by gold © Anthony Bradshaw PhotographerOn April 15, gold suffered its biggest one-day decline since the 1980s. That Monday's sell-off came after a massive decline the Friday before. The total two-day losses of 13% left gold at the lowest closing level in more than two years. The remainder of last week wasn't too kind on the precocious metal either.

In the video below, MSN Money's Charley Blaine discusses what caused recent fluctuations in gold prices and if there is an opportunity for investors.

Gold has always been regarded not only as inflation hedge, but also as a hedge against anything that could potentially have a negative global impact. With much of these forces no longer a threat, gold (GLD) could continue to decline, says Blaine.

Gold futures shot higher on Monday after data showed that managed money, such as hedge funds and commodity trading advisors, took advantage of the sell-off and increased their long gold positions (MarketWatch). The sell-off has also apparently pushed up purchases of physical gold.

Still, for now, Blaine recommends a very cautious approach to gold and related investments.

The discussion about gold prices continues over at MSN Money's Facebook community.

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