Gold prices bounced back late Thursday after plummeting as much as 11% in two days as investors fled stocks and into the safe haven.

A lot of traders and investors who are long-term bullish on gold sold out hoping for a correction because of how much it went up,” said Dailey. “The drivers remain intact. The toughest thing to do is stay invested during the various parabolas and sit through the corrections.”

Gold dropped for the first time in seven sessions as some investors sold the metal after signs of slowing growth spurred a rally to a record $1,917.90 an ounce.

Gold reached new heights Friday, soaring as high as $1,881 an ounce, as investors anxious about the uncertain global economy snapped up the precious metal.

Global stocks dropped, European shares suffered the biggest two-day slump since 2008 and oil sank below $80 a barrel on concern the U.S. recovery is faltering and Europe’s debt crisis will worsen. The Swiss franc gained, while gold reached a record high.

Gold futures surged to a record $1,829.70 an ounce on demand for an investment haven as mounting concern that the global economy is faltering triggered a plunge in equities.

Gold prices were stalling out Wednesday despite a hot inflation reading in the U.S. as investors opted for stocks and took profits in gold.

He expects gold prices GC1Z to rise to $2,500 by 2013 from current levels of around $1,770.

Gold fell for a second straight day as a jump in U.S. retail sales helped temper concern that the recovery is faltering, eroding demand for the metal as a haven.

Gold and platinum futures prices again reached parity on Tuesday, as gold continued its record run as one of the few defensive assets left standing.