BLBG: Gold Extends Two-Day Slump as Equities Rally; Silver Declines
Gold slid in New York for a third straight day as equities rallied, eroding the appeal of the precious metal as an alternative investment. Silver also fell.
Stocks in Europe and Asia rallied, pushing the MSCI World Index up for a second day. Gold held by the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, was unchanged for a third consecutive session, after reaching a record last week. Before today, the price gained 9.6 percent this year.
“Gold is keeping a complete eye on the stock market today,” said Frank McGhee, the head dealer at Integrated Brokerage Services in Chicago. “Any weakness in stocks today and gold will rally.”
Gold futures for April delivery fell $4.30, or 0.64 percent, to $965.20 an ounce at 9:29 a.m. on the Comex division of the New York Mercantile Exchange. The price dropped 3.3 percent in the previous two sessions.
Silver futures for May delivery fell 12.6 cents, or 0.9 percent, to $13.905 an ounce in New York. Before today, the metal jumped 24 percent this year.
