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Gold Bites Man!
Nothing stays up forever, not even with Viagra.
The Gold balloon which saw it's price up and over $700 just two weeks ago burst with a loud pop today as Gold sustained heavy losses as a wave of investor selling dragged down gold prices by four percent and silver by five percent.
Gold's failure to break key levels prompted players to take profits despite earlier weakness in the dollar, which generally makes the metal cheaper for holders of other currencies. The dollar later ticked higher.
"Investors are extremely jittery. Overall, the market is going to do some consolidation work here before we make the next attempts on the high side," a dealer in London said.
"Prices are going to bottom out around $635-$640 an ounce," he added.
Gold traded in a broad range, extending the volatile moves that saw prices hit a 26-year high of $730 on May 12, which compared with the record peak of $850 in early 1980.
Gold was quoted at $647.50/649.00 by 1429 GMT after falling as low as $645, against $672.10/672.90 late in the U.S. market on Tuesday.
The metal tried to break Tuesday's high of $673.60, touching $670.50 before it retreated.
Interesting to note that the Oracle of Omaha, Warren Buffett, one of the worlds shrewdest investors divested his Silver holdings a short time ago before the bubble burst today. In the immortal words of Kenny Rodgers, "ya got to know when to hold 'em and when to fold 'em".
