Gold Prices Drop as Investors Throw in Towel

Analysts cite a strengthening economy, dollar for the decline in precious metals.
1:15 | 04/15/13

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Transcript for Gold Prices Drop as Investors Throw in Towel
Goal there's a dramatic drop on Friday and today gold is at its lowest point since March 2011 what's going on. Yet this -- he's a bit -- -- give up here in the gold market Eagles had a phenomenal rally last twelve years really but -- struggled the past six months or so and think the fact that it it wasn't able to gain more traction even with the Fed doing quantitative easing -- -- Bank of Japan doing quantitative easing which in theory. Would stimulate inflation the inflation is not taking hold and a lot of I think a lot of speculative investors are getting -- are thrown in the towel giving up and that is feeding on itself right here at its. Is getting ugly for gold and -- organ for the end of the selloff but it's not pretty right now. So is officially in a bear market and -- -- affect other industries. -- say it is officially a bear market as of this morning down more than 27%. From its all time high. You know it's -- other industries that think again -- ties back -- the story the broader story for commodities selling off amid fears that China's economy is slowing. The US economy you know we're doing okay but not create Europe's a basket case. Japan they're trying to get off the -- so. Where's the growth where's the great story it's gonna drive demand for commodities maybe it's Brazil. Maybe -- India but there's not enough there to really spur the kind of demand you need to get prices moving higher from here.

This transcript has been automatically generated and may not be 100% accurate.

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