At one point, the yellow metal fell to $1,364.50 per ounce before moving back up to $1,378.60.These are the lowest levels seen in the last three weeks.
What's making gold so glum? Part of it has to do with the Bank of Japan and the US Federal Reserve Bank. The Japanese central bank is ceasing its stimulus and the American central bank looks to be tapering its second round of quantitative easing ("QE2"). A reduction in the anticipated money supply reduces expected future prices. Gold is considered an inflation hedge, generally falling when expected future prices aren't as high as once thought.
What can we expect in the near-term with gold and its tracking ETF, the SPDR Gold Trust (GLD)? We asked Talking Numbers contributors Richard Ross, Global Technical Strategist at Auerbach Grayson, and Enis Taner, Global Macro Editor at RiskReversal.com, what they think is next for bullion.
To hear Ross and Taner analyze short-term gold, watch the video above.