Gold Prices Decline After US Funds Banks With $250 Billion
Wednesday, October 15, 2008 : PermalinkBloomberg – Gold fell for the fourth straight session after the U.S. agreed to spend $250 billion to rescue ailing banks. Silver climbed.
Stocks in Europe and Asia rose for a second day after Treasury Secretary Henry Paulson announced plans to buy stakes in financial firms to ease the lending crisis. Gold fell 1.9 percent yesterday as the Standard & Poor’s 500 Index soared 12 percent.
“The equity markets have come back, so you’ll see some of the capital that was flowing into gold just a week ago go to equities,” said Frank Lesh, a trader at FuturePath Trading LLC in Chicago.
Gold futures for December delivery dropped $3, or 0.4 percent, to $839.50 an ounce on the Comex division of the New York Mercantile Exchange. The price declined $64 in the previous three sessions.
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