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Gold prices slide

Gold prices dropped to 1%, or the biggest drop in the last month. The decline in gold prices following the drop in crude oil prices after the release of the projection from Goldman Sachs.

Rally U.S. government bond prices also kept investors choose to exit from gold investments while. The price of gold has two consecutive days receded, after Japan raised the level of nuclear crisis.
On 12 April 2011 trading, gold prices in the spot market dropped to as low as U.S. $ 1,451.73 per ounce, even down to U.S. $ 1,443.49 an ounce. On Monday, gold prices had hit a record high at U.S. $ 1476.21.

Prices of gold futures for June delivery fell 14.5 to U.S. $ 1,453.60 dollars per ounce, with trading volume lower than normal activity.

Gold prices have gone up to 11% since late January as the rally in oil prices and grain responding high inflation. The correlation between gold and oil on Tuesday, the closer to 0.7, approaching the record closest in 3 months. The rally in oil prices lately has increased the demand for gold which is where the investment protection from inflation.

"The report (Goldman Sachs) has given enough reason to investors to cut positions, particularly in a market that is parabolic. The report was enough to dampen enthusiasm for commodities at the moment," says Marck Luschini, chief investment strategist at Janney Montgomery Scott, as quoted by Reuters , on Wednesday (13/04/2011).

Goldman's report also has sparked a decline in crude oil prices. Light sweet crude May delivery lost 3.67 dollars to U.S. $ 106.25 per barrel. Brent Oil May delivery sank 3.06 dollars to U.S. $ 120.92 per barrel.

Goldman Sachs projected the price of Brent oil will drop to U.S. $ 20 in recent months, and said that speculators have been holding down prices beyond fundamentals. This is the second warning from Goldman about the possibility of rapid price reversal, following the surge in commodity prices in the long term.

In December, Goldman projected the price of gold will soar to U.S. $ 1750 per ounce in 2012 triggered an increase in U.S. interest rates.

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