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Gold Bloodbath!

Gold plunged 6.2 percent, the most in 15 years, on concern that rising U.S. interest rates will strengthen the dollar and curb inflation, diminishing the appeal of the precious metal as an alternative investment.

Gold has dropped 21 percent from a 26-year high last month and fell below $600 an ounce for the first time in two months. Producer prices rose more than expected in May, compounding inflation concerns and the chances that the Fed will raise interest rates a 17th straight time when policy makers meet June 29. Higher rates make holding gold less attractive.

Gold now trading at $562, down $42! Platinum is at $1121, down $49.


Posted by Barry Gutwein on June 13, 2006 4:30 PM in Precious Metals | Comments (17)

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