Gold Drops for Second Day as Equity Rebound Cuts Investor Demand
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Gold dropped the most in two weeks as a rebound in global equities eroded demand for an alternative asset and spurred investors to sell the metal after its rally to an all-time high.
The MSCI All-Country World Index climbed as much as 2.8 percent while the Standard & Poor’s 500 Index futures jumped 2.7 percent after legal challenges to Germany’s role in the euro rescue funds were rejected by the nation’s top court. Gold futures slipped from a record $1,923.70 an ounce yesterday as the dollar rose to the highest level against six major currencies in more than a month.