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Gold Posts Record Drop in 33 Years, Silver Also Suffers

April 16, 2013 at 2:23 by Vladimir Vyun

Gold continued to fall today after yesterday’s drop, which was biggest daily drop since 1980. Other metals followed in decline. The drop was caused by the report that showed unexpected slowdown of China’s growth. Chinese gross domestic product grew 7.7 percent in the first quarter of 2013 instead of expected 8.0 percent. Data from the United States added to negativity as the Empire State Manufacturing Index dropped from 9.2 to 3.1 this month, more than was forecast.

The news affected markets strongly as traders were seeking safer assets. Gold was not in favor as investors preferred to put their money somewhere else. Other metals also suffered, including silver, which was expected to fall. Of course, the magnitude of the drop was hard to predict.

June futures for gold slumped as much as $26.60 (2.28 percent) to $1,339.90 per troy ounce as of 2:15 GMT on COMEX today. May contract for silver tumbled $1.11 (4.67 percent) to $22.27 per ounce.

If you have any questions and comments on the commodities today, use the form below to reply.

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