Gold News & Info

Source: MarketWatch

New York— Gold futures fell 2.8% Tuesday as a stronger U.S. dollar diminished the precious metal's appeal as an alternative investment. Falling oil prices also reduced demand for gold as an inflation hedge. Copper futures also dropped, falling below $2 a pound for the first time in nearly two years on worries that global demand for the metal will slow. Copper is on track for its biggest yearly drop in 20 years. Gold for December delivery lost $22 to end at $768 an ounce on the Comex division of the New York Mercantile Exchange.

Gold has suffered from funds liquidation as it dropped eight out of nine sessions since Oct. 8. The precious metal has fallen nearly $140, or 15%, during the period. Gold lost 8.3% last week, its biggest weekly decline in two months. "Funds who would like to keep their asset of last resort are being forced to sell, and this is causing weakness in the paper gold market price," said Peter Spina, president of GoldSeek.com. See full story.