Gold Sinks 5.6% As Rally Hits Wall
Gold's glittering rise came to an abrupt halt on Wednesday as investors piled out of the metal, driving prices down 5.6%.</br></br>The decline lopped $104.20 off the price of a troy ounce, pushing it down to $1,754.10. It marked a dramatic reversal after weeks of gains.</br></br>The slump began in early trading and selling accelerated quickly as volume spiked. Ominously, in some people's opinions, the move came amid little obviously negative news. That underscored for many analysts and investors how quickly sentiment can turn and how rapidly money can be siphoned out of the market.</br></br>Gold's decade-long rally picked up steam in recent months, driving the metal from record to record, in nominal terms. In less than two months, it rose 27% and appeared to be headed to $2,000 an ounce. Just one year ago, gold was at $1,200.</br></br>"An exponential move like that is unsustainable," said Pratik Sharma, managing director of Atyant Capital, a firm in Boca Raton, Fla., that has a gold fund. "Exuberance has to be washed out."