From Barron's:
Gold prices tumbled firmly below $1,200 an ounce on Friday, marking new lows for the yellow metal in 2015.
Gold prices slid 2.7% to $1,164.80 a troy ounce on the New York Mercantile Exchange in recent trading. The Wall Street Journal’s Ira Iosebashvili reports that gold’s one-day slide is shaping up to be the largest since December 2013.
The SPDR Gold Shares (GLD) declined 2.7%, turning negative for the year.
The culprit was was the upbeat February jobs report, which coalesced into fears that the improving economy will prompt the Federal Reserve to eschew its ultra-low interest rate policy now that economic growth is rolling.
Gold is feeling the pain for two main reasons. First, gold is often a haven asset, and one that pays investors zero interest. Rising rates (and the potential for them) make yield-bearing assets more attractive by comparison. Secondly, the dollar is surging; since gold is priced in dollars, the precious metal becomes more dearly priced for overseas...MORE
