Gold melts down as it falls below $1,300 per ounce

Gold values have plummeted since the US Federal Reserve's statement last night, now sinking to two year lows of $1,319.76 per ounce 2010 lows of $1,304 per ounce below $1,300. Shares in gold miners are also down.

On Monday SocGen analysts predicted gold would fall to $1,200 per ounce by the end of the year.

Bank of America Merrill Lynch note:

We stress test free cash flow under a $1200/oz scenario, and believe that African Barrick, Hochschild and Petropavlovsk could struggle to maintain their current level of cash dividends.

Last night's statement was dovish, so we would usually expect gold values to rise, as it is considered a good store of value as fiat money becomes less attractive. Perhaps traders are reacting to the improved Fed forecasts, suggesting that a recovery is more concrete than thought.