Gold for December delivery /quotes/comstock/21e!f:gc\z10 (GCZ10 1,368, -35.00, -2.49%) dropped $37.80, or 2.7%, to $1,365.50 an ounce on the Comex division of the New York Mercantile Exchange. That was gold’s largest one-day drop since early July.
The contract earlier traded as low as $1,359.30 an ounce, according to FactSet Research.
Gold had lost more than $30 overnight, but seemed to have recovered somewhat at the start of floor trading. Nervous investors, however, pulled the plug on gold after they saw other commodities and stocks selling off.
On the week, gold has lost 2.3%, its worst weekly decline in four weeks and a first drop after two consecutive weekly gains.
If China tightens, it raises the likelihood more countries would follow suit, said Matt Zeman, a trader at LaSalle Futures in Chicago. Gold would lose one of its main engines so far: fear of inflation, he added. (more)
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