Gold dropped substantially in the wake of U.S. President Barack Obama's speech on jobs.
Reuters reports that trading began with a sharp downturn, with gold prices falling as much as $20 in one minute. With mixed signals about the future of the yellowish metal, many commodities brokers are looking to cache profits while prices remain high.
"People are probably very exposed to gold now, because they've been so bullish, yet the technicals aren't that great now that you've had that double-top pattern coming through," Macquarie analyst Hayden Atkins told Reuters.
The Street notes that Thursday night's speech represented a roughly even split for gold prospects. Increased federal spending is likely to drive down the dollar, which tends to push up gold prices, but increased economic activity has the reverse effect.
Ultimately, gold could depend upon how effective the proposal is at spurring job growth, as well as whether it passes the Republican-held House.
As of 10:10 Friday morning, gold futures had fallen 0.15 percent, a $2.7 drop to $1,854.80 per troy ounce.
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