Gold dips below $700 as investors sell to pay stock losses

23 Oct, 2008, 2054 hrs IST, PTI
NEW YORK: Gold on Thursday dipped below $700 an ounce for the first time in over a year as rising dollar and stock markets meltdown forced invest

ors to sell the precious metal to pay losses.

The dollar-denominated gold tumbled by over 37 dollar, or 4.2 per cent at Rs 697.40 dollar an ounce, the lowest since September 6, 2007. The metal traded around 772 dollar some two days ago.

Silver fell 7 cents, or 0.7 per cent, to 9.39 dollar an ounce. Two days ago, its price hovered around 10.87 dollar an ounce.

The euro fell to the lowest level since December 2002 against the Yen and dropped to the weakest in almost two years versus the dollar on speculation that the European Central Bank will cut interest rates.

The 15-nation currency dropped for seventh day against the greenback, its longest stretch since September 8, after ECB Executive Board member Jose Manuel Gonzalez-Paramo signalled lower borrowing costs.

The dollar has risen 4 per cent this week against the basket of currencies.

Asian stocks tumbled on Thursday as concerns about the worsening global economy played on investors, despite continued efforts by governments to ease the financial crisis.

Till yesterday gold slid 12 per cent as dollar gained 11 per cent against a weighted basket of six major currencies, while the Dow Jones Industrial lost 36 per cent.


via:E.T