Gold Prices Dive as Money Flows to Equities (Update 1)
NEW YORK (TheStreet) -- Gold prices plummeted on Tuesday as investors poured out of safe-haven assets and into equities.
Gold for June delivery at the COMEX division of the CME dropped $25 to $1,575.90 an ounce. The gold price traded as high as $1,604.30 and as low as $1,574 an ounce, while the spot price was tumbling $23.90, according to Kitco's gold index.
"The money has been flowing into the U.S. dollar, into the U.S. equity markets; the U.S. equity markets pinned primarily because of the
Private investors continued to add gold to their portfolios in March but at a slower pace than February, a survey released Tuesday by BullionVault found. The index settled at 53.2 in March against 54.4 in February, and marked the third-consecutive month of decline.
"I did expect it to fall greater, and to me this just shows that the public is not convinced of the recovery yet," said Miguel Perez-Santalla, a vice president at BullionVault. "The federal government is kicking the can down the road, and that's what the public believes."
Societe Generale analysts released a report on Tuesday morning that said they believed gold had entered bubble territory.
"Rising interest rates, driven in part by a positive view of the U.S. economy with an associated improvement in the dollar, could be the perfect storm to start a longer-term bear market," the report said.
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-- Written by Joe Deaux in New York.
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