BLBG: Gold Falls as Stocks Rally, U.S. Funds Banks With $250 Billion
By Pham-Duy Nguyen
Oct. 14 (Bloomberg) -- Gold fell for the fourth straight session as equities rallied, eroding the appeal of the precious metal as a haven from market turmoil. Silver climbed.
Stocks in the U.S., Europe and Asia rose for a second day after the U.S. injected $250 billion into ailing banks. Last week, investment in the SPDR Gold Trust climbed to a record as the Standard & Poor's 500 Index slid 18 percent, the most since 1933.
``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, trader at FuturePath Trading LLC in Chicago.
Gold futures for December delivery fell $2.40 or 0.3 percent, to $840.10 at 9:26 a.m. on the Comex division of the New York Mercantile Exchange. The metal rose to a record $1,033.90 on March 17.
Silver futures for December delivery rose 8.5 cents, or 0.8 percent, to $10.875 an ounce. The price was down 28 percent this year through yesterday.
To contact the reporter on this story: Pham-Duy Nguyen in Seattle at pnguyen@bloomberg.net.
