Economics
Gold Falls as Portuguese Bank Seeks to Calm Debt Concerns
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Gold declined for the first time in three days as concerns eased that banking woes in Portugal will spur a wider debt crisis in Europe, crimping demand for the precious metal as an alternative investment.
Banco Espirito Santo SA sought to calm investors after a parent company missed payment on short-term notes. Foreign lenders’ exposure to Portugal is low and the European Central Bank is ready to support banks, signaling Santo’s troubles are unlikely to cascade in the region, Goldman Sachs Group Inc. said in a note. Yesterday, gold reached a 16-week high.