Gold Prices Fall off Cliff to Under $1,200

Gold prices corrected big today, dropping as much as $46.45 at one point to $1,197.19, a 3.7 percent plunge.

Most of this is on continuing weak economic data and news, which is another way of saying investors are concerned over deflation at this time, rather than inflation, which is one of the major, underlying reasons for gold prices going up.

Depending on the economic news today, we could see another sell-off in gold, and gold prices will plummet again if that's the case.

It doesn't matter though, as nothing in the fundamentals for gold has changed, and even if we have a couple more days of dropping prices, they'll definitely come back, and probably even stronger, as central banks and governments have ignorantly confirmed they're going to use quantitative easing (printing more money) to keep their respective economies from entering into another recession.

Printing money is also a good sign for gold investors, as it debases currencies and sets up gold as the safe haven of choice and ultimately the best place to be when inflation soars from the endless printing of paper currency. It's not a question of if, it's only a question of when.

So deflationary fears will result in the unfortunate printing of more money, which will result eventually in gold prices surging to new record-breaking levels.