NEW YORK - August 24, 2011 - Gold futures prices in New York tumbled more than $100 an ounce on Wednesday, the worst one-day loss in three years, as investors engaged in profit-taking ahead of a critical speech by U.S. Federal Reserve Chairman Ben Bernanke on Friday.

The New York futures contract for December delivery closed at 1,757.30 an ounce, down $104 or 5.6%. This is the worst one-day performance since March 2008.

Gold has been in a seesaw battle with equities in the past few weeks - briefly cresting a new record high Tuesday of $1,917.90/oz - as investors have raced back and forth with each new piece of economic data, falling 7% in the past two days after rising as much as 16% since August 5.

The U.S. dollar also advanced slightly as investors continue to speculate over whether Bernanke will introduce a third round of quantitative easing in his annual speech in Jackson Hole, Wyoming.

Analysts were quick to point out that gold, which has gained more than $400 since July, was overdue for a correction.

“What’s happening was no surprise. Gold was due for a hell of a correction,” Martin Murenbeeld, chief economist with DundeeWealth Economics, said Wednesday. “Gold’s gone parabolic and when things go vertical, anything that goes vertically up will come vertically down.”