Gold Rebounds as Drop From Record, Economy Concern Spur Demand

Gold rebounded from its biggest drop since February 2010 in London as concern about slowing economic growth and debt crises boosted demand for the metal as a protection of wealth. Bullion futures fell in New York.

Gold touched a record $1,913.50 an ounce yesterday before plunging as some investors sold the metal after its gain and as global equities rallied. Moody’s Investors Service cut Japan’s credit rating, while a report showed German business confidence fell to the lowest level in more than a year. German Chancellor Angela Merkel rejected a call to put up gold as security for bailouts, reflecting euro-area divisions.