Gold Price Dives $92 in Last 30 Hours

The gold price slid 2.5% Wednesday, declining $46.20 to $1,829 per ounce.  After trading to a new all-time high early yesterday, the price of gold has plunged $92 over the past 30 hours.  Cyclically-sensitive assets climbed higher with stock prices rising 1% as measured by the most actively traded S&P 500 futures contract.  Oil rose 1% to $85.90 per barrel while copper gained 1.1% to $4.12 per pound.

Speculation that President Obama will announce an economic stimulus package at a press conference tomorrow helped buoy stocks and commodities.  The U.S. dollar, which has rallied for six consecutive days as measured by the U.S. Dollar Index (DXY), moved lower versus its foreign counterparts.

On Tuesday the gold price climbed to another record high, but turned sharply lower as the day wore on as profit-taking engulfed the precious metals.  The spot price of gold initially rallied to a new record of $1,921, but settled with a loss of $25.00 at $1,875.20 per ounce.  The late-day sell-off resumed this morning.  The SPDR Gold Trust (GLD), a proxy for the gold price and the world’s largest gold ETF, dropped to $177.96 per share, lower by $4.94.  Silver retreated in concert with the gold price, falling $1.37, or 3.2%, to $40.62 per ounce.

Gold equities headed lower Thursday morning, following the gold price to the downside.  Today’s sell-off comes after the AMEX Gold Bugs Index (HUI), a composite of the world’s largest gold companies, rallied to a new all-time high of 634.85 during yesterday’s trading session.  Barrick Gold (ABX) and Royal Gold (RGLD) were two of the top performers on Tuesday, rising 1.4% and 2.2%, respectively, while Agnico-Eagle Mines (AEM) and Gold Fields (GFI) each slid 0.8%.