Lower Gold Prices Capture Trading Spotlight On Monday
Gold prices dropped by more than 9 percent by the end of trading. That is the sharpest daily decline in the gold price in 30 years. Analysts say it suggests investors are losing faith in the precious metal as a safe haven.
STEVE INSKEEP, HOST:
NPR's business news begins with gold losing some of its glitter.
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INSKEEP: The explosions in Boston and a report showing China's economy to be slowing caused upheaval in many markets yesterday. But gold took the spotlight when its price dropped by more than 9 percent by the end of trading. This is the sharpest daily decline in the gold price in 30 years. Analysts say it suggests investors are losing faith in the precious metal as a safe haven.
Many gold investors had believed stimulus programs in the United States, Japan and Europe would cause inflation, making assets like gold more attractive, but there have been few signs that inflation is taking root. In effect, this is a sign of confidence in the broader economy. Since 2011, the price of gold has fallen almost 30 percent.
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