NEW YORK: The price of gold fell to the lowest point in three months Friday as investors pile back into stocks.
Gold for December delivery lost $28.70, or 2.2 per cent, to $1,268.20 an ounce Friday. It was the lowest price since late July. Silver fell 64 cents, or 2.9 per cent, to $21.26 an ounce.
Precious metals analysts said the selling is likely tied to news that Republicans and Democrats are making progress toward increasing the country's borrowing authority, which would avert a default on the US government's debt.
Investors sold precious metals, which are seen as safe haven investments, and piled into stocks. The Dow Jones industrial average rose more than 330 points Thursday and rose an additional 111 points on Friday.
Analysts at Barclays said gold prices may rebound if a debt ceiling deal falls through and the US government passed through the Oct. 17 debt ceiling deadline without a resolution. But beyond that, they see no reason why gold prices would recover.
In other metals trading, high grade copper for December delivery rose 2 cents, or 0.6 per cent, to $3.27 a pound. December palladium was up 75 cents, or 0.1 per cent, to $713.30 an ounce.
Agricultural commodities were mixed.
Wheat for December delivery was up 6.75 cents, or 1 per cent, to $6.923 a bushel while corn was down 5 cents, or 1.1 per cent, to $4.333 a bushel. November soybeans were down 22 cents, or 1.6 per cent, to $12.668 a bushel as well.
In energy commodities, crude oil fell 99 cents, or 1 per cent, to $102.02 a barrel. Natural gas rose 5 cents, or 1.4 per cent, to $3.78 per 1,000 cubic feet.
Heating oil for November delivery fell 4 cents, or 1.1 per cent, to $3.03 a gallon while wholesale gasoline futures fell 4 cents as well, or 1.1 per cent, to $2.67 a gallon.
Gold for December delivery lost $28.70, or 2.2 per cent, to $1,268.20 an ounce Friday. It was the lowest price since late July. Silver fell 64 cents, or 2.9 per cent, to $21.26 an ounce.
Precious metals analysts said the selling is likely tied to news that Republicans and Democrats are making progress toward increasing the country's borrowing authority, which would avert a default on the US government's debt.
Investors sold precious metals, which are seen as safe haven investments, and piled into stocks. The Dow Jones industrial average rose more than 330 points Thursday and rose an additional 111 points on Friday.
Analysts at Barclays said gold prices may rebound if a debt ceiling deal falls through and the US government passed through the Oct. 17 debt ceiling deadline without a resolution. But beyond that, they see no reason why gold prices would recover.
In other metals trading, high grade copper for December delivery rose 2 cents, or 0.6 per cent, to $3.27 a pound. December palladium was up 75 cents, or 0.1 per cent, to $713.30 an ounce.
Agricultural commodities were mixed.
Wheat for December delivery was up 6.75 cents, or 1 per cent, to $6.923 a bushel while corn was down 5 cents, or 1.1 per cent, to $4.333 a bushel. November soybeans were down 22 cents, or 1.6 per cent, to $12.668 a bushel as well.
In energy commodities, crude oil fell 99 cents, or 1 per cent, to $102.02 a barrel. Natural gas rose 5 cents, or 1.4 per cent, to $3.78 per 1,000 cubic feet.
Heating oil for November delivery fell 4 cents, or 1.1 per cent, to $3.03 a gallon while wholesale gasoline futures fell 4 cents as well, or 1.1 per cent, to $2.67 a gallon.
ABDUL WAHEED
PGDM 2nd YEAR.
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