E-Paper
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.
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.
