Gold is getting crushed

Gold is getting crushed.

On Monday morning, gold fell more than 1%, or about $15 an ounce, to around $11.86.70.

It's now back below the key $1,200 level that it crossed last Thursday.

After the Federal Reserve's monetary policy update on Wednesday, which markets considered quite dovish, gold prices climbed more than $22 an ounce.

Now, the precious metal has sunken to the weakest level in nearly a week.

In the latest Commodity Manual published Monday, Morgan Stanley wrote, "lack of inflation, emerging financial stability in Europe, and robust economic activity in the US are all bearish for gold."

Here's a chart showing the slump on Monday morning:

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