Gold Tumbles Most Since March 2008 as Demand for Haven Wanes

Bloomberg Businessweek reports:

Gold plunged $104 in New York, capping the biggest drop since March 2008, on speculation that financial markets may be stabilizing, eroding the appeal of the precious metal as a haven.

Bullion has tumbled more than 7 percent in two days, erasing gains in the past two weeks that sent the metal up as much as 16 percent since Aug. 5 to a record $1,917.90 an ounce yesterday. On Aug. 16, Wells Fargo & Co. said in a report that rising speculative demand from investors had pushed the market into a “bubble that is poised to burst.”