Gold Dips Below $1,800 as Stocks Rally |
| Wall Street Journal - Sep 7, 2011 |
Gold fell below $1,800 for the first time in five trading sessions as stronger equity markets lure away investors.
Investors look to gold to shelter wealth from economic and political risk and a sound store of value. But as riskier assets like stocks and commodities posted strong gains Wednesday, investors were tempted to shed gold in favor of seeking higher returns elsewhere.
Gold for September delivery was down $53.90, or 2.9%, at $1,816 a troy ounce in midday trade on the Comex division of the New York Mercantile Exchange. The contract touched a low of $1,792.80 a troy ounce.
"Trying to catch gold when it's falling is tougher than trying to catch a safe falling off the Empire State building," said Sterling Smith, an analyst with Country Hedging.
Earlier in the day, Germany's Federal Constitutional Court ruled that the first Greek bailout package and aid extended through the European Financial Stability Facility, the euro zone's rescue fund, is legal. The move paves the way for German Chancellor Angela Merkel to win parliamentary approval later this month to expand the EFSF and make it more flexible.
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- Posted: 2011-09-07 13:00:42
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