Gold slumps to six-month lows, teeters near $1,200/oz.

|By:, SA News Editor

Seems the Fed taper wasn't priced in to gold prices after all, as spot gold tumbles briefly below $1,200/oz. to six-month lows, and the leading gold miners ETF (GDX) slides to new 52-week lows.

A few minutes ago, gold (GLD) -2.6% to $1,202.80/oz., silver (SLV) -4.2% to $19.20.

The taper is "another sign of increasing normalization for the world economy," Macquarie analyst Matthew Turner says. "Gold's insurance function is less desirable in that environment."

Commerzbank’s commodity strategists argue the selling is overdone: "The fact that money will remain extremely 'cheap' for a long time yet should in fact have lent support to the gold price rather than it coming under pressure" due to the impending end to QE.

Precious metals ETFs: IAU, AGQ, PHYS, SIVR, USLV, ZSL, SGOL, UGL, DGP, GLL, DZZ, UGLD, DGL, DBS, DSLV, DGZ, AGOL, GLDI, DGLD, SLVO, TBAR, USV, UBG.

Miner ETFs: GDXJ, NUGT, DUST, SIL, GLDX, SLVP, GGGG, RING, SILJ, PSAU, JNUG, JDST.