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Friday, April 16, 2010

Flight from Gold after Goldman Sachs (NYSE:GS) News

Gold traders dump the yellow metal on Goldman Sachs fraud charges

In an illogical move, traders fled gold after the news that Goldman Sachs (NYSE:GS) was charged with fraud by securities regulators.

The idea that gold is considered a risk in volatile times doesn't make sense, but then traders behave in that manner, although gold investors don't.

Gold futures plunged on the news, dropping by over $24 an ounce as of this writing.

Most fears over gold are in the short term and not the long term, as uncertainty over what else may emerge in the banking industry has gold traders flustered for now.

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