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 Gold price drops sharply on US economy hopes

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Gold price drops sharply on US economy hopes Vide
PostSubject: Gold price drops sharply on US economy hopes   Gold price drops sharply on US economy hopes Icon_minitimeThu Aug 25, 2011 3:26 am
The price of gold has plunged 9.3%, after hitting a record $1,913.50 an ounce on Tuesday, as markets became more upbeat about the economy.

By late trading in Asia on Thursday, the precious metal had dropped to $1,738, while stock markets continued to rally.

Analysts put the falls down to profit-taking and hope of new measures in the US to try to bolster its recovery.

Gold is perceived as a safe investment in times of uncertainty.

Its price has risen steadily this month during a tumultuous period on the markets caused by fears about the global recovery and euro debt crisis.

http://www.bbc.co.uk/news/business-14656210
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