In the throes of a financial crisis, investors sought safety in gold this week, but now that Washington has announced plans to bail out big-name financial institutions, gold futures have started to tank.
The price of December gold had risen to $897 per ounce yesterday, up $46.50, or 5.47%, from its Wednesday price.
Today, that price fell $33, or 3.37%, to $864 per ounce, according to the New York Mercantile Exchange.
MarketWatch reported a 7.6% drop at one point this morning, the largest fall in gold prices in 25 years.
Another reason for the about-face in investors’ attitude toward gold is the boost in the U.S. dollar: Today it is up 1.7% against the Japanese yen.
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