Wednesday, March 19, 2008

Gold Falls Most Since 2006, Leads Commodity Drop on Fed Outlook

From Bloomberg:

Gold plunged the most since June 2006, leading a decline in commodity prices on speculation that the Federal Reserve will ease the pace of interest-rate cuts, boosting the appeal of stocks and bonds.

The UBS Bloomberg Constant Maturity Commodity Index fell 51.7554, or 3.5 percent, to 1,437.64 at 11:42 a.m. in New York, led by declines in silver, gold, wheat, sugar and crude oil. The index of 26 commodities has dropped in three of the past four sessions and is down 8.6 percent from a record on Feb. 29....MORE