Gold Extends Drop, Heads for Biggest Dive Since 2008

Gold plunged in New York, heading for the biggest drop since December 2008, as increasing orders for U.S. durable goods eroded demand for the metal as a haven asset, Bloomberg writes.

U.S. equities climbed today after a Commerce Department report showed orders for U.S. durable goods climbed more than forecast in July as a surge in demand for aircraft and autos eclipsed a decrease in business equipment. Federal Reserve Chairman Ben S. Bernanke and other central bankers meet this week in Jackson Hole, Wyoming, amid signs of a slowing U.S. recovery.

“In the short-run, the durable goods numbers are more optimistic for the economy, which doesn’t bode well for gold,” said Adam Klopfenstein, a senior market strategist at MF Global Holdings Ltd. in Chicago. “Investors are paring down positions in gold on expectations Bernanke will do something to boost equity prices.”

Find out more at http://www.bloomberg.com/news/2011-08-24/gold-extends-drop-heads-for-biggest-fall-since-2008-as-haven-demand-wanes.html