Gold price plunges amid Dubai debt fears

This is Money & Reuters
Friday, Nov 27th, 2009

The price of gold tumbled nearly 5% today – its biggest one-day fall in a year – amid a widespread sell-off of assets due to Dubai debt concerns.

Torried trading in Asia, which saw shares in Japan plunge 4% and Hong Kong’s Hang Seng index fall 5%, saw commodities come under pressure. The price of oil was down 5%.

Bullion, which hit a new record of $1,195 an ounce yesterday, slumped from around $1,192 at midnight to $1,138 within a couple of hours. By 9.20am, it had recovered to $1,158. Silver, at its worst, was down about 5% while platinum fell 2%.

Dubai is burdened by £49bn of debts, while government investment company Dubai World is hobbled by £36bn of liabilities. Fears are growing that the City state’s economy may buckle under the weight of these debts, most of which is owed to global banks.

Full article here

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This article was posted: Friday, November 27, 2009 at 4:50 am

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