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. Last Updated: 07/27/2016

Gold Prices Sink as Investors Decide Rally Is Finished

LONDON -- Gold prices collapsed almost to where they began 1996 when frustrated investors decided on Monday that a New Year rally was finally over and pulled out.


Elsewhere, European shares began and ended the day mixed, without any dramatic changes, and the dollar traded quietly ahead of key U.S. and German economic data this week, while election results in Spain and Australia provided local interest.


But gold prices claimed the most attention, falling about six dollars in as many minutes when the New York Comex futures market opened under a wave of sell orders from investment funds with big gold holdings.


Spot gold touched $392.60 an ounce before bouncing to $393.70 at the official fixing, its lowest fix since January 4.


A sharp gold rally saw bullion burst upwards in January after a long period of torpor and rise eight percent to $416.25 in early February, its highest fixing in six years. But the momentum faltered and the price drifted back to $400.