Gold price crashes as retail investors pour record $1b into ETFs

The army of new retail investors who scrambled to get exposure to gold has been smashed by a violent price reversal after traders abruptly locked in profits amid concerns that the stunning rally had pushed bullion too high.

Gold slumped as much as 6.3 per cent, the biggest decline in more than 12 years, before settling at $US4125 an ounce on Wednesday morning. Silver, which has also benefited from the haven trade, sank as much as 8.7 per cent to around $US48 an ounce.

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