Feb. 29, 2012, 11:43 a.m. EST
Gold slumps over $70 on Bernanke comments
By Myra P. Saefong and Sarah Turner, MarketWatch
SAN FRANCISCO (MarketWatch) — Gold futures slumped on Wednesday, dropping more than $70 an ounce as comments from Federal Reserve Chairman Ben Bernanke fueled strength in the dollar, and as upbeat U.S. economic data dulled safe-haven demand for the metal.
Metals investors also digested news that the European Central Bank will offer a larger-than-expected amount of loans to the region’s banks.
Gold for April delivery fell $71.50, or 4%, to $1,716.90 an ounce on the Comex division of the New York Mercantile Exchange.
“Looks like Bernanke is pushing the bond story here, thus money is flowing away from risk on his comments into Treasuries, hurting the precious metals and stocks,” said Richard Hastings, a macro strategist at Global Hunter Securities.
Full story: http://www.marketwatch.com/story/gold-futures-inch-higher-in-electronic-trade-2012-02-29