NewsMine — economy — united-states — 2007-aug-dec — Viewing Item

Investors selling gold as market crashes { July 2007 } Original Source Link: (May no longer be active)    http://bloomberg.com/apps/news?pid=20602013&sid=aux_sJkHxroE&refer=commodity_futures http://bloomberg.com/apps/news?pid=20602013&sid=aux_sJkHxroE&refer=commodity_futures Gold, Silver Fall; Investors Sell Metals to Cover Equity Losses By Pham-Duy Nguyen Aug. 16 (Bloomberg) -- Gold fell the most since June in New York and silver prices declined as a plunge in global equity markets prompted investors to sell precious metals to raise cash. U.S. stocks followed markets in Asia and Europe lower on concern a global credit crunch will slow economic growth. Before today, gold had gained 6.5 percent this year. ``There's just a lot of people running scared,'' said Matt Zeman, a trader at LaSalle Futures Group in Chicago. ``People are selling gold to cover losses in other markets.'' Gold futures for December delivery fell $14.80, or 2.2 percent, to $664.90 an ounce at 10:58 a.m. on the Comex division of the New York Mercantile Exchange. A close at that price would be the biggest decline for a most-active contract since June 8. Silver futures for September delivery fell 48 cents, or 3.8 percent, to $12.075 an ounce. Before today, the metal had fallen 2.9 percent this year. The Standard & Poor's 500 Index fell for a fourth straight day and is down 10 percent from a record reached July 19. The S&P 500's biggest drop this year was a 3.5 percent decline on Feb. 27, part of a five-day selloff in global equities that wiped out $2.4 trillion of market value. That week, gold fell 6.2 percent, the biggest weekly decline since July 2006. ``Forced liquidation sales are behind gold's slump,'' said Jon Nadler, an investment-products analyst at Montreal-based Kitco Minerals & Metals Co. ``Safe-haven buying is unable to offset the unwinding of positions by larger players.'' Investors are buying U.S. Treasuries instead of gold, analysts said. Two-year yields fell to the lowest in 22 months. ``The public is not turning to gold but rather Treasuries as the equity markets get pounded,'' said Ralph Preston, senior market analyst at futures brokerage Heritage West Financial Inc. in San Diego. ``A close under $675 is going to put the bulls on the defensive and embolden the bears.'' Last Updated: August 16, 2007 11:00 EDT

Americans struggle more living by paycheck { September 2007 } Bernanke says housing slowing economy { October 2007 } Bet on fed cut as dollar falls to record low { September 2007 } Dollar sinks as feds surprise cut rates { July 2007 } Dow drops over 360 on dollar credit worries { October 2007 } Dow plunges 387 on subprime concerns Fed chair says inflation will cause big problems { October 2007 } Fed pumps 20b to stop stock slip { July 2007 } Federal reserve injects 17b into market { July 2007 } Inflation evidence curbs inflation fears { November 2007 } Inflation jumps { November 2007 } Investors selling gold as market crashes { July 2007 } Markets fall because rate cut too small { November 2007 } Oil and toys increase trade deficit { December 12 2007 } Stocks fall on france worries over US credit { July 2007 } Stocks fall over 360 on credit concerns { September 2007 } Stocks plunge on oil credit worries { October 2007 } Stocks soar with rate cut hope { October 2007 } Stocks threaten to drop if fed doesnt cut big { November 2007 } US economy problems either way { December 24 2007 } Wallstreet loses and bonds record rally { August 2007 } World stocks continue to tumble { July 2007 } World stocks meltdown over US economy fears { July 2007 } Files Listed: 23

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