Gold drops for 2nd day as equity rebound cuts investor demand

Gold today dropped for a second day as rising equities curbed demand for an alternative asset and spurred investors to sell the metal after its rally to an all-time high.

Gold on Wednesday dropped for a second day as rising equities curbed demand for an alternative asset and spurred investors to sell the metal after its rally to an all-time high.

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The gold declined $49.10, or 2.62% to $1,824.50 an ounce on the Comex. The metal had touched a record high of $1,923.70 on Tuesday. Silver also fell 2.93% to $40.73 an ounce.

Bullion slipped from a record as the dollar rose to the highest level since July 13 against six major currencies after Swiss central bank set a ceiling on the franc's exchange rate.

European stocks rebounded from a two-year low, still down 23% from the year's high in February on increased concern Europe's debt crisis is harming the economic recovery.