Gold Prices Down 2%, Other Metals Contract on Lingering EU Debt Debacle
The "safe haven" commodity gold dropped two percent Thursday as apprehensions continue to hound investors wary over the eurozone's ability to contain its debt crisis.
Gold contracts for December delivery slid $34.10, or 2.1 per cent, to $US1612.90 an ounce on the Comex division of the New York Mercantile Exchange, its' lowest since September 26.
Investors and analysts' earlier confidence waned and are almost decided the eurozone does not have a credible plan to arrest its fiscal crisis even as leaders are set to meet this weekend to discuss yet again arrangements to fix the problem.
"Gold is looking quite weak on the chart," Bill O'Neill, principal with Logic Advisors, said in The Australian. "The money flow is really not good at all for commodities in general, and that's certainly weighing on copper and the ever-volatile silver market."
While gold continues to be still preferred by investors, a number have turned to the strengthening US dollar for fiscal confidence.
Gold dropped in September from above $1900 an ounce when investors moved to the US dollar and cashed out to cover losses in other markets. The precious metal still has yet to recover, going between $1600 and $1700.
Palladium fell 1.6 per cent at $US587.75 an ounce, while platinum slid 2.4 per cent to $US1474.24 an ounce.