Gold dropped below US$800 per ounce Friday for the first time since 26 October 2007. A sell off of more than US$100 per ounce since 1 August. According to the AP reasons for the drop include the strengthening U.S. dollar, crude oil easing from its record levels and signs that worst may be over for the slumping U.S. economy.
The greenback’s comeback has hit gold particularly hard. Gold for December delivery dropped $22.40 to settle at $792.10 an ounce on the New York Mercantile Exchange, after earlier falling to $777.70, its lowest level since October. As recently as March, the price of gold was well over $1,000 an ounce.
Other precious metals traded mixed Friday. Silver for December delivery shed $1.43 to settle at $12.93 on the Nymex, its lowest close since almost a year ago, while September copper rose 1.65 cents to settle at $3.2925 a pound.
The best place to check precious metals is at http://www.kitco.com/market/
Below is a chart from Friday 15 August 2008:
