Oct. 4 (Bloomberg) -- Gold fell for the first time in three sessions as some investors sold the metal to cover losses in other assets.
The euro touched the lowest level in more than a decade against the yen after European governments signaled bondholders may have to take bigger losses on Greek sovereign debt. The MSCI All-Country World Index retreated as much as 3.1 percent. Goldman Sachs Group Inc. cut its global 2012 economic growth forecast and predicted recessions in Germany and France.
“You sometimes see a bit of forced liquidation in gold when equities look a bit wobbly,” Dan Smith, an analyst at Standard Chartered Plc in London, said today in a telephone interview. “Everyone still continues to worry about what’s happening in Europe.”
Gold futures for December delivery fell $34.60, or 2.1 percent, to $1,623.10 an ounce at 11:25 a.m. on the Comex in New York. Before today, prices declined 14 percent from a record $1,923.70 on Sept. 6.
“Because of the general nervousness in the market, we have seen liquidation across all assets, including gold,” William O’Neill, a partner at Logic Advisors in Upper Saddle River, New Jersey, said in a telephone interview. “People are adopting a risk-off mentality.”
Prices rose 17 percent this year before today, heading for an 11th straight annual gain, as faltering economies and financial turmoil boosted the appeal of the precious metal as a haven asset.
Silver futures for December delivery declined $1.175, or 3.8 percent, to $29.62 an ounce on the Comex.
--With assistance from Glenys Sim in Singapore. Editors: Daniel Enoch, Millie Munshi.
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