(Image Souce: The Express Tribune)

BY QIAN RUISHA

ANCHOR ADAM FALK

You're watching multisource business news analysis from Newsy. 

The price of gold plunged by 5.6%, to close at $1,757.30 an ounce on Wednesday. This was the biggest one-day dip in almost three years.

Before the dip, gold had rallied nearly 18% in the past four weeks, and reached a record high of $1,917.90 in Asia on Tuesday. (BBC)

So why the sudden dip? Philip Streible, senior market strategist at MF Global Ltd., speaks with Lisa Murphy on Bloomberg’s "Fast Forward".

"Streible: We just moved too far too fast. The type of trend is unsustainable. So the price falls twice as fast as it rises." (Bloomberg)

Gold is seen as a safe haven for investors in times of uncertainty, and its price rose steadily this month due to fears over the global recovery and the Euro debt crisis.

Bloomberg also spoke with Patricia Mohr, a commodity-market specialist who said QE expectations were unnaturally driving the price.

“Gold got pushed up on the idea that Federal Reserve Chief Ben Bernanke will announce further quantitative easing. Now people are not so sure whether that will happen and that is creating disappointment in the gold market.” (Bloomberg)

As for the expectations of the gold market, Nick Brooks, head of research and investment strategy for ETF Securities, says despite the selloff, the fundamentals for higher prices are intact.

Brooks: It’s not based on any real deep changes on market, just traders moving around based on short-term news. (The Street)

As for gold, all eyes will be on Fed Chairman Ben Bernanke,  as his announcement on quantitative easing is expected on Friday. (The Street)

Transcript by Newsy.