This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

'Perfect Storm' Sends Gold Bugs Scurrying (Update 5)

The dip below $1,400 an ounce marked gold's lowest levels in more than two years.

The selloff also has triggered a negative reaction across commodities markets.

May crude oil futures dropped $2.58 to close at $88.71 a barrel on the New York Mercantile Exchange.

"There has been no single fundamental catalyst for the panic selling in the gold and silver markets," Jim Wyckoff, senior analyst at, wrote in a note. "But the fear in the commodity trading world is pervasive Monday morning, which has most commodity futures markets and world stock markets under selling pressure."

Veteran gold and commodities analysts were calling the Friday and Monday drop a historic event.

"In 40 years of watching gold I have not seen anything like this," George Gero, precious metals strategist at RBC Capital Markets, wrote in a note. "The continued sharp setback is due to margin calls, risk managers prompting cash raising, and bouts of bargain hunting as some begin to take longer term positions."

As for Monday's action, it was difficult for funds and individuals to find the confidence to jump back into the gold market.

The CME Group said late Monday that it increased the deposit for an initial account on gold futures to $7,040, up from the previous amount of $5,940. The CME also said it increased margins for silver, platinum and palladium.

Gold ETFs tumbled on Monday. SPDR Gold Trust (GLD) was off 8.8% at $131.31, while iShares Gold Trust (IAU) lost 8.9% to $13.19.

Gold mining stocks also took a huge hit on Monday. Shares of Barrick Gold (ABX - Get Report) dropped 12.6%, and the junior mining ETF Market Vectors Junior Gold Miners (GDXJ) skid 12.5%.

-- Written by Joe Deaux in New York. With additional reporting from Antoine Gara

>Contact by Email.

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
GLD $105.11 0.09%
SGOL $106.87 -0.22%
IAU $10.60 0.19%
GDXJ $19.65 2.10%
ABX $7.24 5.20%


Chart of I:DJI
DOW 17,751.39 +121.12 0.69%
S&P 500 2,108.84 +15.59 0.74%
NASDAQ 5,114.6870 +25.4810 0.50%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs