Investors rushed to the exit and piled into the U.S. dollar, about $3 away from its 52-week high, and Treasuries. Gold typically benefits from any big move into safety, but a stronger dollar was pressuring prices as was the need for cash. At its high Wednesday gold was up 28% for the year while the S&P is down almost 10%, which means gold is a prime outperforming asset to sell when times get tough. Traders have also been expecting some kind of correction to the $1,650-$1,680 an ounce level for a while and this downward move could lead the way. Oliver Pursche, co-portfolio manager at the GMG Defensive Beta Fund says "starting in mid-August
Alix Steel in New York. >To contact the writer of this article, click here: Alix Steel.