Gold Plunges for Worst Two-Day Loss Since 1983

Gold Plunges for Worst Two-Day Loss Since 1983

On Monday, gold prices nosedived to their worst two-day loss since 1983, breaking below $1,400–far removed from a September 2011 high of $1,920.

“There are a lot of people throwing up their hands. Throwing positions overboard. Panic is everywhere,” said Dennis Gartman of the The Gartman Letter in a CNBC interview. “I’ve never seen anything like this. I mean it.”

Gold prices have fallen 7% since Friday, following a 4.7% decrease the week prior. 

ABC News reporter Richard Davies says the gold plunge is attributable to “the recent rise in the stock market, the slow, steady improvement in the US economy and the recent strength of the dollar.” 

Davies added: “For years gold bugs have predicted economic apocalypse with hyper-inflation and a collapse of stock prices. That simply hasn’t happened, and many investors have given up on gold.”