Global spot gold prices plummeted almost $US170, or 8.8%, during the past three days - from a record $US1911 ($NZ2299) on Tuesday to a low yesterday of $US1742 - as emboldened investors rushed to share markets to scoop up bargain stocks.
Gold's fall of 4.3% on Wednesday was its worst daily decline since December 2008 as rattled investors, who in recent weeks had steadily pushed up the price, breaking a then record of $US1700 on August 1, left the historical safe haven to return to beaten-down financial shares.
A speech tomorrow by Federal Reserve chairman Ben Bernanke appears set to be the main event of the week for all markets, as investors wait to see if he will talk about more stimulus for the faltering United States economy.
Conversely to gold, United Kingdom Brent crude rose slightly to about $US110 a barrel and US West Texas to about $US85 yesterday, supported by reduced US crude stocks and positive manufacturing data - but countered by economic growth uncertainties.
Reuters reported overall global stock markets posted solid gains for a second day on Wednesday, which aside from prompting the fall in gold prices saw US Government bonds also fall sharply.
Underpinning the positive investor sentiment was new orders for long-lasting US manufactured goods rising in July, offering hope the ailing US economy could dodge a second recession, even though a gauge of business spending fell.
