Investors are bailing out of gold and on Thursday it was down around $200 from Tuesday’s record high.
They are cashing in their gains and waiting to see whether the Federal Reserve is going to announce more quantitative easing — that is printing money — which would further lift the price of gold.
Investors lost faith in gold’s latest rally after the yellow metal surged nearly 20 percent in early August to record highs at $1,911.46 an ounce.
In addition leading trader CME Group raised the amount it charges for margins which makes it harder for speculators to operate.
CME runs various exchanges including the NYMEX and COMEX and it put up margin requirement on COMEX gold futures by 27 percent, the biggest hike in more than two and a half years and the second increase in the month.