Gold Drops 2% from Post-Bear Stearns High

PHYSICAL GOLD BULLION PRICES fell hard in Asia and London early on Monday, dropping almost 2% from Friday's 15-week closing high – their best level since peaking above $1,000 per ounce as the Federal Reserve stepped in to rescue Bear Stearns in mid-March. Crude oil futures dropped more than 1.5% to dip below $143 per barrel, almost 2.3% below the most record high, hit last Thursday. Global equity markets ticked higher, meantime, delivering the third gain in 10 trading sessions for the German Dax, while the US Dollar rose against all other major world currencies. "The dominant drivers of the market last week were the oil price and the Euro," notes the team at Mitsui, the precious metals dealer, here in London today. "Both are lower this morning [as] the US Dollar has continued to strengthen. All the precious metals are under... [read full story]