Gold falls as terror threat rises -- what a mystery!

Section:

Gold Falls as Traders Scramble
to Assess News of Terror Plot

By Ciara Linnane
CBSMarketWatch.com
Thursday, August 10, 2006

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B4116847D%2D801B...

NEW YORK -- Gold futures fell early Thursday as traders scrambled to assess the news of a thwarted plot to blow up airliners en route from the U.K. to the U.S. that sent oil and stock futures lower.

"We are puzzled as traders this morning with gold lower, as it should be up big," said Kevin Kerr, editor of Global Resources Trader, a newsletter published by MarketWatch. "The news is coming in so fast and furious that traders are almost in shock and are getting their bearings and deciding what to do next."

Kerr said he expects gold to rally once the gravity of the situation has set in. "We see $700 gold as a major possibility should these events escalate."