Global Liquidity Worries Rattle Gold, Oil, Copper

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Gold's status as a safe investment has dwindled in recent months because it has become much more integrated into widely diversified portfolios. When investors trim these portfolios they sell commodities including gold.

Credit and equity market turmoil leached into commodities such as gold, oil and copper on Thursday as nervous investors seeking liquidity switched to safe-havens like U.S. Treasury bonds...

Gold's status as a safe investment has dwindled in recent months because it has become much more integrated into widely diversified portfolios. When investors trim these portfolios they sell commodities including gold.

"A lot of investment funds are in trouble nowadays and if this continues, they would reduce a lot of risk positions, including gold, in their effort to generate some dollars," said Michael Kempinski, senior precious metals trader at Commerzbank.

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