Gold stocks set for biggest 3-day drop in 28 years

Investors fleeing commodities amidst economic uncertainty

Gold is set to make its sharpest three-day fall in nearly 30 years as global investors shed off commodity stocks in favour of hoarding cash amidst the increasing probability of a Greek sovereign debt default and continuing economic uncertainty in the eurozone. Over the last three days of trading, the value of gold has dropped nearly 10 per cent, taking its largest hit over three days since February 1983. Other commodities, such as platinum and silver, have taken hits in recent trading as investors look to hoard cash—a sign of decreasing economic confidence. Over the weekend, European officials sought ways to restore order in the eurozone economy. Among the largest points of contention are whether member countries should put forward money to bail out European banks and countries struggling to curb public debt.

The Globe and Mail


Looking for more?

Get the Best of Maclean's sent straight to your inbox. Sign up for news, commentary and analysis.