HUGE Gold Price Drop

SABCnews.com - economy/indicators: "Gold price drops by biggest margin ever

Gold lost its glitter today as its shares fell by its biggest margin since July 2004
June 13, 2006, 18:30

Gold lost its glitter today as its shares fell by its biggest margin since July 2004. At one stage the gold index, which is home to three of the top five gold producers in the world, fell by nearly 11% as the gold price dropped to below $600 an ounce.

But South Africa was not alone as world markets also suffered major losses due to fears that higher inflation and interest rates will smother economic growth. The timing could not have been worse. Over the last two days, the JSE hosted an exhibition promoting mining companies on the stock exchange. But a stronger US dollar spoilt the party. It has made gold more expensive, which leads to a lack of demand and a lower price. "