Gold Plunges 7% for the Week

On Friday, gold (NYSEARCA:GLD) futures for June delivery, the most active contract, increased $3.10 to close at $1,395.60 per ounce, while silver (NYSEARCA:SLV) futures for May fell 29 cents to finish at $22.96.

It was gold’s second consecutive day of gains, but it comes after a disastrous performance earlier in the week. Over the course of only two days, gold plunged $200 to reach its lowest level since February 2011. In the process, it logged its worst one-day percentage drop since 1980, and the largest fall in dollar terms on record. On a technical basis, gold reached its most oversold reading since, at the latest, 1975.

As the chart below shows, gold dropped almost 7.0 percent for the week, while silver plunged 12.3 percent.

Screen Shot 2013-04-19 at 1.30.44 PM

In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) increased 0.65 percent, but the iShares Silver Trust (NYSEARCA:SLV) edged 0.20 percent lower. Gold miners (NYSEARCA:GDX) such as Barrick Gold (NYSE:ABX) and Newmont Mining (NYSE:NEM) were both relatively flat.

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Disclosure: Long EXK, AG, HL, PHYS