Aug 23, 2011
Gold prices retreated more than 1 percent from record highs on Tuesday as a recovery in appetite for assets seen as higher risk, such as stocks, took the steam out of a rally that many saw as overdone above $1,900 an ounce.
A hike in margin requirements for gold forwards on the Shanghai Gold Exchange also helped curb the precious metal’s scorching rise. [ID:nL4E7JN040]
Spot gold was down 0.8 percent at $1,880.89 an ounce at 0859 GMT, having hit a record $1,911.46 an ounce in Asia. The metal is still up by nearly a third this year, and is on track for its biggest one-month rise since September 1999.
It rallied sharply as stock markets were battered last week by concerns over the strength of the U.S. economy and stability of the European banking sector, breaking above $1,900 an ounce on talk that further U.S. monetary easing may be announced.
This article was posted: Tuesday, August 23, 2011 at 3:28 am