Gold loses lustre after falling to six-month low

The price of gold has fallen through $1,600 for the first time in six months as investors continue to pile into risk assets such as equities.

In trading today, gold fell below the important technical level for the first time since August last year, down $3.5 at $1,599. Gold has retreated sharply from its recent peak of $1,790 in October as the eurozone crisis takes a back seat and investors increase their exposure to risk assets. ETF Securities said the resurgence of risk appetite over the past month has led to a general clearing out of net long COMEX gold positions, pushing the price down. However, the provider said gold now looks attractive as bargain hunters are returning to take advantage of the recent sharp fall. ...