Saturday, March 3, 2012

Gold surges, pulls back in response to credit news

Gold briefly shot above $900 an ounce Thursday as panicky investors poured money into safe-haven assets, but the metal later gave back its gains after the government said it was preparing a plan to rescue banks from the toxic debt that has pummeled the financial system over the past year.

Gold had gained over $110 in a frenzied two-day rally, including the largest ever one-day price advance on Wednesday. But late Thursday, after regular gold trading ended, investors began selling and shifting money back into stocks, first on a report that the U.S. government may create an entity to absorb banks' bad loans and later after the government said it was working on a plan to …

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