News Column

Gold Drops to 2-year Low Amid China Economic Worries

April 15, 2013

European shares fell and gold plunged to a two-year low on Monday amid renewed concerns about the outlook for the Chinese economy.

Europe's benchmark Eurostoxx 600 was down 0.88 per cent at 289.83 points as the European trading day came to an end, while the euro edged down 0.2 per cent to 1.3083 dollars.

The news that China's economy grew by a less-than-forecast 7.7 per cent during the first quarter also helped to further undercut the price of gold.

By late afternoon trading, gold prices had tumbled 6.2 per cent to 1.389 dollars per ounce - their lowest level since April 2011.

The precious metal traded at 1.536 dollars in late trading on Friday after falling by about 5 per cent.

Commerzbank commodities analyst Eugen Weinberg told dpa-AFX there was "a panic sale" underway in the gold market.

Analysts had expected the National Bureau of Statistics in Beijing would say the world's second biggest economy expanded by 8 per cent during the first three months of the year.

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Source: Copyright 2013 dpa Deutsche Presse-Agentur GmbH

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