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Gold loses the biggest drop in 25 years

03 November 2008 14:25 (UTC +04:00)

Gold for December delivery closed down $20.30 at $718.20 an ounce on the Comex division of the New York Mercantile Exchange. The metal lost 18% in October, its biggest percentage loss since February 1983, according to Comex data, MarketWatch reported.
Besides, the gold rate set by the National Bank of Azerbaijan was AZN 591, down 16% on a month ago.
Gold is now 28% lower than its high above $1,000 an ounce hit in March and $900 in September as the dollar rose and investment funds unwound their positions for much-needed cash.
Although major central banks in the world repeatedly pumped money into the financial system, the credit crunch didnâ€™t appear fading.
Gold tends to move opposite to the dollar, whose strength makes bullion more expensive for holders of other currencies.
Market watchers sat there are three reasons behind the declining prices of the yellow metal, one is the recent rally in markets and the other is the financial crisis facing companies.