Gold market sees biggest two-day drop since 1983

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Gold sank Sept. 23 to cap its biggest two-day plunge since 1983, following routs in global equity and commodities markets. The Standard & Poor’s GSCI Index of 24 commodities fell to a nine-month low. Gold has dropped 15 percent since reaching a record $1,923.70 an ounce on Sept. 6.

“Gold has become the source of liquidity for global margin calls,” said Michael A. Gayed, chief investment strategist at Pension Partners LLC. “Also, deflationary pressures are acting on gold.”

Gold futures for December delivery fell $101.90, or 5.9 percent, to settle at $1,639.80 on the Comex in New York, the biggest decline since March 2008. In two days the metal fell 9.3 percent, the most since February 1983. The weekly decline of 9.6 percent also was the most since that year.