Gold falls to six-week low as U.S. stocks down

March 7, 2012 9:04 am 

CHICAGO, March 7 — Gold futures on the COMEX division of the New York Mercantile Exchange fell Tuesday to their lowest level since Jan. 25, as substantial declines in the U.S. stock market and renewed concerns over problems in Europe dampened trading.

The most active gold contract for April delivery fell 31.8 dollars, or 1.9 percent, to settle at 1,672.10 dollars per ounce.

The Dow Jones Industrial Average lost over 200 points Tuesday in its worst session of the year so far while equity markets in Europe and Asia were also down, giving a bearish atmosphere to the day which saw gold's continued slide downward.

Despite official denials of rumors that the upcoming Greek debt swap would be delayed, uncertainty still cast a negative light on trading, and could possibly continue to affect the market until the Greek deadline March 8.

Concerns over the European situation and Monday's revised Chinese growth forecast from eight percent to 7.5 percent were also in the minds of some traders, as were declines in copper and energy prices that caused some to further question the pace of economic growth.

Other precious metals also saw declines in trading Tuesday due to the pervasive atmosphere. Silver for May delivery fell 91.2 cents, or 2.71 percent, to 32.78 dollars per ounce. Platinum for April delivery fell 50.7 dollars, or 3.05 percent, to 1,611.9 dollars per ounce. (PNA/Xinhua) DCT/ebp


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