Gold price falls sharply after record highs

24th August 2011, Comments 0 comments

Gold prices fell sharply on profit-taking Wednesday, one day after surpassing $1,900 an ounce for the first time, traders said.

Gold dropped as low as $1,761.28 an ounce on the London Bullion Market after striking a record high of $1,913.50 an ounce Tuesday -- a loss of eight percent.

Investors have rushed to snap up the 'safe-haven' precious metal in recent weeks over fears of a fresh global recession and amid the eurozone debt crisis.

"After breaching $1,900 an ounce, gold prices tumble as profit-taking emerges but the macro backdrop remains gold favourable," Barclays Capital Suki Cooper said in a note to clients.

© 2011 AFP

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