Gold has benefited from three independent functions over the past few months (speculative asset, inflation hedge and dollar counterpart); but a related rally in the dollar and plunge in speculation would easily work with theory that the metal was - at least temporarily - oversold. The past week was one of records. From a record high of $1,226.56/ounce set on Wednesday; the commodity would see its sharpest one-day decline since December 1st of last year to close the week.

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Gold Suffers its Biggest Daily Drop in a Year as the Dollar Surges