Gold sinks to a three-month low
NEW YORK (AP) — The price of gold fell to the lowest point in three months Friday as investors pile back into stocks.
Gold for December delivery lost $28.70, or 2.2 percent, to $1,268.20 an ounce Friday. It was the lowest price since late July. Silver fell 64 cents, or 2.9 percent, to $21.26 an ounce.
Precious metals analysts said the selling is likely tied to news that Republicans and Democrats are making progress toward increasing the country’s borrowing authority, which would avert a default on the U.S. government’s debt.
Investors sold precious metals, which are seen as safe haven investments, and piled into stocks. The Dow Jones industrial average rose more than 330 points Thursday and rose an additional 111 points on Friday.
Analysts at Barclays said gold prices may rebound if a debt ceiling deal falls through and the U.S. government passed through the Oct. 17 debt ceiling deadline without a resolution. But beyond that, they see no reason why gold prices would recover.
In other metals trading, high grade copper for December delivery rose 2 cents, or 0.6 percent, to $3.27 a pound. December palladium was up 75 cents, or 0.1 percent, to $713.30 an ounce.
Agricultural commodities were mixed.
Wheat for December delivery was up 6.75 cents, or 1 percent, to $6.923 a bushel while corn was down 5 cents, or 1.1 percent, to $4.333 a bushel. November soybeans were down 22 cents, or 1.6 percent, to $12.668 a bushel as well.
In energy commodities, crude oil fell 99 cents, or 1 percent, to $102.02 a barrel. Natural gas rose 5 cents, or 1.4 percent, to $3.78 per 1,000 cubic feet.
Heating oil for November delivery fell 4 cents, or 1.1 percent, to $3.03 a gallon while wholesale gasoline futures fell 4 cents as well, or 1.1 percent, to $2.67 a gallon.