why gold prices down today august 25 2011 : The price of gold dropped further, a day after the precious metal saw its biggest drop since before the recession. Gold was down US$14.60 to $1,742.70 per ounce on the New York Mercantile Exchange in midday trading Thursday. It had fallen as much as $31.20 earlier in the day.
The metal is continuing to fall after plunging more than $100 per ounce Wednesday, as investors who took in promising U.S. economic news felt confident enough in the economy to cash in their gold on the back of recent record high prices.
Gold lost five per cent of its value Wednesday_ the biggest single-session drop since the precious metal fell $146 in September 2008, just before the recession spread to Canada.
The stock market ups and downs of the last few weeks due to the European debt crisis and fears of another recession in the U.S. compelled investors to stockpile the metal, which is seen as a safe haven in shaky economic times.
But news from the U.S. government Wednesday that orders for manufactured goods rose in July eased investor jitters, giving them confidence in the stock market again and leading them to take their money out of gold.
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