Gold prices have been plummeting since the New York session open, falling at the fastest pace since December 2008, due to improved market sentiment and rising equities.
The precious metal had hit record highs eleven times in just the month of August as nervous investors worried about a global recession and rushed to the safe haven metal to protect their investments.
Just yesterday gold hit a record high over $1,911 an ounce but has tumbled to a session low of $1,761 since opening New York at $1,845.72.
U.S. equities climbed higher today after the U.S. Commerce Department released data on U.S. durable goods orders which showed a jump in July, much more than forecast as a result of a surge in demand for aircraft and autos, which made up for a decrease in business equipment demand. This improved market sentiment and gave an opportunity for investors who were long on gold to sell and take profits. Some believe the precious metal was overvalued recently.
Meanwhile, the focus is also now on the Jackson Hole, Wyoming summit where U.S. Federal Reserve Chairman Ben Bernanke is expected to signal further stimulus measures to revive the ailing U.S. economy, which could result in more quantitative easing.