Gold Dropped To 34-Month Low, Dived Below $1200 Ounce

Gold futures slumped to a 34-month low and headed for the worst quarterly slump on record amidst Federal Reserve comments on tapering stimulus. Gold futures plummeted below $1,200 a troy ounce, as U.S. economic data topped analysts’ estimates. However, gold steadied on Friday after posting its lowest level since August 2010. Last week, Federal Reserve Chairman Ben Bernanke hinted that the U.S. might begin tapering its massive bond buying program. As a result, the view of gold as a safe haven for investors became damaged. If the Fed does begin tapering off its $85 billion per month bond purchases, then interest rates would likely rise,…