Gold at one-month low as investors shun commodities
By Frank Tang and Anna Ringstrom
NEW YORK/LONDON (Reuters) - Gold finished nearly 3 percent lower on Thursday, capping a tumultuous week that included a record high on Monday and a 6 percent slide the previous session, as investment funds cashed in bullion for cash to cover losses in other financial markets.
All U.S. commodities markets will be shut on Friday for the Good Friday holiday. The markets will reopen on Monday for normal trading hours.
The combination of a sharp bounce of the dollar and heavy losses in the energy markets also prompted liquidation in gold amid a full-scale commodities retreat for a second day.
Other metals also dropped sharply following gold's decline, led by silver's losses of more than 8 percent. Platinum and palladium also slumped.
On Thursday, spot gold bottomed at $904.65 - a level last seen on Feb. 18 -- versus $944.20/945.00 late in New York on Wednesday. It was last at $920.30/921.10 by New York's last quote at 2:15 p.m. EDT (1815 GMT).
Gold dived 6 percent on Wednesday in a dash for cash which analysts said was sparked by a smaller-than-expected U.S. rate cut on Tuesday.
Gold peaked on Monday at $1,030.80. The yellow metal was still up 10 percent since the start of the year.
Jonathan Jossen, an independent floor trader in New York, blamed gold's decline on deleveraging -- raising cash to reduce debt, meet margin calls and cover losses. Continued...
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