Gold Plunges to Lowest Level in More Than 2 Years
The price of gold is plummeting its lowest level in more than two years.
The precious metal extended its decline after plunging on Friday, when the U.S. government reported that wholesale prices fell in March by the most in 10 months. Investors tend to buy gold when they expect inflation to increase. Any indication that prices aren’t rising prompts investors to sell gold.
A proposal that Cyprus sell some of its gold reserves to support its banks also rattled the market. Traders worry that Spain, Italy and other weak countries might do the same.
The price of gold plunged $90, or 6 percent, to $1,410 an ounce as of 9:45 a.m. EDT Monday. The price of the metal has dropped 10 percent in the last two days.
Copyright 2013 The Associated Press.