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Gold Hit a Record, Then Plunged. Where Will It Go Next?

  • Prices slipped 10% in just a few days after powering to record
  • Signs of profit taking, though there are still plenty of bulls
Russian Gold Bar Production At Ural Mining And Metallurgical Co.
Photographer: Andrey Rudakov/Bloomberg

Gold’s rapid slump from a record is raising the question of whether the go-to haven has peaked or is just stumbling before making new highs.

Boosted by global stimulus measures to support a battered economy, negative real rates and a weaker dollar, the metal had surged more than 30% this year, surpassing the previous all-time high set in 2011. The rally -- one of the best among commodities -- prompted banks including Goldman Sachs Group Inc. and Bank of America Corp. to forecast that prices would keep climbing.