Gold price tumbles as banking sector strengthens

Gold price fell again for the third session on Monday as the US and European governments agreed on plans to aid in the recovering of the collapsed banking systems, the positive results in the banking system lessened the demand of other safe-haven investments.

As the governments rescue plans restored confidence in the money markets and investors began investing again the stock markets improved as well as crude oil value rising for the first time in four days.

Gold for the December delivery slid to the lowest level since October 3. at 1.9 percent of $16.50 to finish up at $842.50 an ounce on the Comex division of the New York Mercantile Exchange

As investors looked for safe places to put their money gold was a good bet but the price decline just shows how gold prices can change once the demand for a safe haven fades.

Source: marketwatch