Gold prices have fallen dramatically to end below US$800/ounce for the first time in 2008. It was down more than 8% on the week. Gold closed at US$787 in New York, US$786.50 earlier in London on Friday, August 15, 2008. This follows gains to the US dollar, which have been attributed to rises in American manufacturing outputs, which many saw as a positive surprise.
The fall in gold belied its supposed reputation as a 'safe haven' in troubled economic times. It is falling as other commodities are doing the same. Other metals are also seeing declines, notably aluminium, although copper was the lone gainer. Silver was marked down particularly hard. With crude oil prices, and grains, both seeing rapid and similar price declines as gold, it is both hard to see the 'safe haven' attribute for this icon metal right now, and it does raise the question whether the end of the commodities bubble is being signalled by the markets.
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