Gold crashes as investors bail out
http://www.telegraph.co.uk/money/mai.../cngold120.xml
http://www.telegraph.co.uk/money/mai.../cngold120.xml
Investors scrambled to liquidate risky positions across the board last night in a renewed flight to safety, setting off a biggest one-day fall in gold for a quarter of a century and a slide in currencies and stock markets.
"A major commodities correction is under way," said James Steel, a strategist at HSBC. Stephen Jen, a currency strategist at Morgan Stanley, said the markets were now flashing warnings of "severe risk aversion" comparable to the panic last August.
Phil Flynn, senior trader at Alaron Trading in Chicago, said: "The commodity bubble is bursting. There's a sense that the Fed created this bubble and by cutting rates less than forecast it is deflating it. There is demand destruction occurring and it's going to be hard to prop up oil prices."
"A major commodities correction is under way," said James Steel, a strategist at HSBC. Stephen Jen, a currency strategist at Morgan Stanley, said the markets were now flashing warnings of "severe risk aversion" comparable to the panic last August.
Phil Flynn, senior trader at Alaron Trading in Chicago, said: "The commodity bubble is bursting. There's a sense that the Fed created this bubble and by cutting rates less than forecast it is deflating it. There is demand destruction occurring and it's going to be hard to prop up oil prices."