Gold Slumps to Seven-Month Low as Economic Concern Ease

Gold futures slumped to a seven- month low as signs of economic optimism eroded demand for the precious metal as a haven. This is mainly due to the increase in confidence of the German economy, which is currently riding a 10 month high. As a result, the US plans to wind down their monetary economic stimulus in an effort to curb the 3 week long gold slump. According to a senior marketing analyst in Chicago, this is a good sign. "The economy is no longer falling apart, and gold is no longer indispensible. The fact that the US is talking about ending the stimulus means the economy is doing relatively better."

Gold futures for April delivery fell 0.4 percent to close at $1,572.80 an ounce at 1:50 p.m. on the Comex in New York, the lowest settlement since July 18. The metal, down 2.3 percent this week, has dropped 11 percent in the past 12 months. 

http://www.bloomberg.com/news/2013-02-22/gold-poised-for-weekly-loss-as-haven-allure-fades-dollar-jumps.html