Source: Financial Times, 24th August 2011

Gold prices suffered their largest two-day absolute fall in more than three decades, dropping nearly $150 between Tuesday and Wednesday as investors took profit after bullion prices earlier this week hit a nominal record high.

But investors and analysts said it was too early to call the top of the decade-long bull market in gold, noting that previous corrections had proved short-lived.

“If you look at the long-term price, there have been similar corrections and it has continued going up,” Matthew Turner, precious metals strategist at Mitsubishi, said. But he acknowledged that last week’s rally, when gold rose 6 per cent, was “excessive”.

Gold was affected by a rising equity market and concerns that a speech by Ben Bernanke, president of the US Federal Reserve, at a gathering of central bankers in Jackson Hole on Friday may not push investors towards bullion.

Read the full article on FT.com