Gold dips below $1,700 as investors cover asset losses

Sep 23, 2011 |

Bloomberg via PTI

New York

Tags:

Gold
markets

Gold prices dipped below $1,700 an ounce, a biggest weekly drop since 2008 as some investors sold the metal to cover losses in other assets.

The gold dropped by $50.70, or 2.9 per cent to $1,691 an ounce, the lowest price since August 8 on the Comex. The silver also plunged 12 per cent to $32.37 an ounce, the lowest price since May 12.

The gold is down 6.7 per cent this week, the biggest drop since December 2008, after setting a record at $1,923.70 on September 6.

Equities and commodities plunged this week on concerns that policy makers are running out of tools to avert another global recession.

More than $3.4 trillion has been erased from equity values this week, driving the MSCI All-Country World Index of shares into a bear market.

Central bankers and finance ministers will discuss the outlook today at the annual meetings of the International Monetary Fund and World Bank in Washington.

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