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Gold Loses 5% and Drops Below $1600 per Ounce for the First Time in 3 Months

gold price 2011

 

Financial News Story of the Day – Gold Chases Euro Down Below $1600 an Ounce

Gold prices have fallen lately as the coveted metal dropped below $1600 an ounce for the first time in 3 months. It seemed as if gold was a rocket ship for the majority of this year, climbing and climbing as the Federal Reserve pumped more money into the system via quantitative easing and devaluing the dollar. Today is the first indicator in months that the metal may start trending down for the near future. As European debt worries continue to plague the global financial markets, gold reacted much like the Euro and fell (source: Finance.Yahoo.com).

Excerpt: ““It’s the never-ending European debt crisis still playing out, combined with some year-end profit-taking and a weakening of the euro,” said Jeff Wright, metals and mining analyst at Global Hunter Securities. “A number of funds are rotating into money-market funds in the U.S. It’s safe and they don’t have volatility,” he added.

Gold’s decline early in the session sent the contract below a 200-day moving average of around $1,619 an ounce, its first break below this level since January 2009. The drop deepened from there, pushing the contract below $1,600.”

Daily Finance Summary – Olympus Crushed

  • Troubled camera and medical equipment maker Olympus suffered from a $1.2 billion write-down of losses
  • The Dow ended the day down nearly -132 points
  • Holiday spending is likely to surprise as retailers report strong activity
  • OPEC reaches oil deal in favor of Saudi Arabia


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