Gold futures are down about 6% this morning to around $1,293 an ounce as most investors interpreted Fed Chairman Ben Bernanke’s remarks yesterday to mean that the Fed is about to take away the punchbowl. Stocks, bonds and gold are all selling off today in an apparent rush to cash, with gold at a two-and-a-half year low.

The impact on gold has been made worse by an overnight report that India’s imports of the yellow metal are likely to fall by 30% after the government imposed new taxes in an effort to curb the country’s trade deficit.

The next long-term downside target for gold is in the range of $1,200 to $1,220 an ounce, with technical resistance at around $1,323 as the price drops. And it could get even uglier once gold breaks below $1,200.

The SPDR Gold Shares trust (NYSEMKT: GLD) is down about 3.7% this morning, at $125.85 in a 52-week range of $124.86 to $174.07. The low was posted early this morning.

The Market Vectors Gold Miners ETF (NYSEMKT: GDX) is down about 4.6%, at $25.28 after posting a new low of $25.00 earlier. The 52-week high is $55.25.

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