Precious Metals Traders Caught Swimming Naked as Gold Sinks (GLD) (IAU) (SLV)

Gold bugs are getting a swimming lesson today as once envious positions entered into just above $1710 per ounce disappear under water. SPDR Gold Shares (NYSE: GLD) lost 1.3 percent and spot gold fell to $1705 per ounce, its lowest level since the first week in September.

Today's downturn is related to an article in the New York Times that raises questions about Fed Chairman Ben Bernanke future with the Fed. The article says that Bernanke may not seek re-election as chairman even if Obama is reelected. The most recent rally in gold is tied in large part to quantitative easing by the Fed, which some fear will create inflation.

Gold prices have plunged $95 per ounce after being rejected near $1800 per ounce, a levels seen as key resistance by many traders.

Silver and iShares Silver Trust ETF (NYSE: SLV) has suffered a similar fate. SLV is lower by 2.4 percent today and silver prices have fallen below $32 per ounce.

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