Why did Gold drop $42.80 Oct 4 2016 ?

Gold plunged more than $40 an ounce Tuesday, falling below $1,300 for the first time since June. The New York Spot price closed at $1,268.40, a decrease of $42.80



Bloomberg reported it was the biggest drop in nearly three years, citing concern that an improving U.S. economy will push the Federal Reserve to boost interest rates soon.



Shares of gold-mining companies also declined significantly. Barrick was down $1.94 to $15.45, a drop of 11 percent.


Newmont declined by 10 percent, down $3.85 cents to $34.25. Klondex and Kinross saw drops of more than 13 percent.


The decline in gold prices follows a rally that began at the first of the year when prices were around $1,050 an ounce.


Bloomberg also reported that the dollar was headed for the biggest gain in two weeks, curbing the appeal of gold of as an alternative asset.


There has been a lot of speculation of why Gold dropped so much so fast.


The answer will be known in a few days. Stay tuned ....