Gold drops to 3-week low

<p>Gold has fallen to a new three-week low for the precious metal.</p>

The value of gold has continued to fall and the precious metal dropped to a new three-week low yesterday (November 7th).

It lost around one per cent of its value after early gains, continuing the recent struggles of the commodity, reports Reuters.

Following the news the European Central Bank has cut interest rates to a new record low, the price of gold slipped to below $1,300 (£813) an ounce.

Thomas Capalbo, a precious metals broker at New York futures brokerage Newedge, said: "When the stocks are rallying, investors have little reason to head to safe havens and physical assets like gold, as they can go into the stock market and do well there."

The Dow Jones hit a new record high earlier in the week and the strength of the markets appears to have been bad news for precious metals such as gold.

Mining group Centamin revealed a fall in its profits for the third quarter of the year earlier this week, with the firm blaming the dropping value of gold for the poor performance.

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