Gold Slips Below $850

Source:

“Gold is pressured now as the dollar is firming and stocks are plunging. In the short term, gold could be weighed down but the market is still bullish on gold in the long term,” said Hiroyuki Kikukawa, analyst at IDO Securities in Tokyo.

Gold fell to its lowest in nearly three weeks below $850 (U.S.) an ounce, as euro weakness against the dollar and sliding energy and global equity prices sparked heavy profit taking in the metal.

Gold came under pressure as some investors were selling the precious metal to cover margin calls from hefty losses made on global stock markets...

“When heavy sell-offs in global stocks are happening, it's tough to buy gold,” said Hiroyuki Kikukawa, analyst at IDO Securities in Tokyo.

“Gold is pressured now as the dollar is firming and stocks are plunging. In the short term, gold could be weighed down but the market is still bullish on gold in the long term,” he said.

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