Gold Slumps as Stock Markets Advance

Gold futures were sinking in the U.S. Thursday as stocks, helped by a plan to ease accounting rules, rose sharply.
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Gold futures were sinking in the U.S. Thursday as stocks, helped by a plan to ease accounting rules, rose sharply.

April futures were down $27.40 to $898.70 an ounce at the Comex division of the New York Mercantile Exchange. The most actively traded contract was June, which fell $27.20 t $900.50. Silver fell 25 cents to $12.73 an ounce, and copper rose 4 cent to $1.89 a pound.

Good news led investors away from gold as the safe-haven need deteriorated. "Gold futures

got hit with a triple whammy" says George Gero, vice president of global futures at RBC Capital Markets. Stocks around the world popped into positive territory, the European Central Bank sold some of its gold, and India imported much less of the metal then investors expected, he says.

On the home front, the

Financial Accounting Standard Board

said it would ease mark-to-market accounting rules, which would help U.S. banks reduce losses on their books.

Gero is now waiting to see what kind of effect the latest news will have on open interest. "Gold

is going below $900 in the short term if the stock market holds itself.

However, long term, gold will come back up," he says.

In gold stocks,

Newmont Mining

(NEM) - Get Report

gave up 3.1% to $47.40.

Barrick Gold

(ABX)

was declining 3.7% to $33.89, and

Yamana Gold

(AUY) - Get Report

slid more than 5% to $9.57.

Agnico-Eagle Mines

(AEM) - Get Report

was falling 2.5% to $57.86.

Alix joined TheStreet.com TV in February 2007. Previously, she held positions in film and theater production, management, and legal administration. Alix has a degree in communications and theater from Northwestern University.