Gold futures sank below the $1,800 per troy ounce threshold amid efforts to inject liquidity into European banks reduced demand for bullion as a storage haven, Dow Jones Newswires reports.
Beleaguered euro zone banks are to receive injections of dollars as one strategy to strengthen the institutions victimized by the sovereign debt crisis and that news prompted stocks to rally according to Reuters. Gold's allure as an asset haven slipped as the precious metal has fallen to its lowest level in three weeks.
"There's just too much headwind here for gold with stocks performing so well," Vice President George Gero with RBC Capital Markets Global Futures told Dow Jones Newswires.
At 9:12 a.m. on Friday, gold futures gained 0.48 percent, an $8.50 climb to $1,789.90 per troy ounce.
Thus far this year, gold futures have gained 26 percent as the precious metal hurtles toward an 11th consecutive year of annual gains. When gold futures notched the record price of $1,923.70 per troy ounce during the first week of the month, the precious metal had achieved annual gains of roughly 36 percent.
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