Friday, June 29, 2007

Gold Drops in London on Reduced Demand for Inflation Hedge; Silver Gains

(Bloomberg) -- Gold fell for the first day in three
in London on speculation that inflation isn't accelerating enough
to spur demand for the metal as a hedge. Silver rose.

The Federal Reserve yesterday said core inflation, which
excludes food and fuel costs, has ``improved modestly in recent
months.'' The wording was changed from ``somewhat elevated.''
Gold headed for its biggest quarterly drop since the third
quarter of 2006, declining 2 percent.


Read more at Bloomberg Commodities News

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