Gold gain after biggest 3-day drop spur investor concern
Gold on Tuesday gained for the first time in five days as the biggest three-day drop in 28 years spurred some investors to buy the metal on concern about economic growth and debt crises.business Updated: Sep 27, 2011 21:04 IST
Gold on Tuesday gained for the first time in five days as the biggest three-day drop in 28 years spurred some investors to buy the metal on concern about economic growth and debt crises.
The gold gained $ 73.20, or 4.6 %, to $ 1,668 an ounce on the Comex. It dropped to 1,535 on Monday, the lowest level since July 8, and capped the biggest three-day decline since March, 1983.
Bullion slumped 12 % in the previous three days as some investors sold to cover losses in other markets, which plunged on concern there may be another global recession.
The metal has slid 13 % from its September 6 record and last week's plunge prompted CME Group to raise margin requirements on futures contracts.
Silver gained 11 % to $ 33.16 an ounce, after tumbling 26 % in the past three days and touching a 10-month low of $ 26.15 on Monday.
Policymakers are under pressure to halt the European debt crisis that has Greece on the brink of default. The European Central Bank is likely to debate restarting covered-bond purchases and may discuss interest-rate cuts to ease funding strains next week.