Gold sinks to a three-month low

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Associated Press

Posted on October 11, 2013 at 3:00 PM

Updated Friday, Oct 11 at 3:02 PM

The price of gold is falling to the lowest point in three months as investors pile back into stocks.

Gold for December delivery fell $28.70, or 2.2 percent, to $1,268.20 an ounce Friday. It is the lowest price since late July. Silver fell 64 cents, or 2.9 percent, to $21.26 an ounce.

Precious metals analysts said the selling is likely tied to news that Republicans and Democrats are making progress toward increasing the country's borrowing authority, which would avert a default on the U.S. government's debt.

Investors sold precious metals, which are seen as safe haven investments, and piled into stocks. The Dow Jones industrial average rose more than 330 points Thursday and was up another 75 points in afternoon trading Friday.

Agricultural commodities were mixed. Crude oil fell.

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