Gold falls for third straight day

9:07 PM

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Gold falls for third straight day
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Gold prices fell for the third straight day Wednesday. Gold has now lost all of the ground gained in this month’s rally.

Gold for December delivery fell $5.80, less than 1 percent, to settle at $1,647 an ounce. That’s the first time gold closed below $1,650 an ounce since Oct. 7.

Gold hit a record high of $1,891.90 in late August. Prices began to fall after that on worries that gold had risen too high.

Gold prices rebounded this month on worries about inflation. Traders thought a big stimulus plan in Europe would make currencies less valuable. Investors often buy gold as protection against inflation. Doubts about a big European bailout have grown this week. That boosted the dollar against the euro over the last two days.

The leaders of the IMF, Germany, France, and the European Central Bank are preparing for a crucial summit this weekend to shape a rescue package for European banks and heavily indebted countries like Greece.

Expectations about what the summit will produce are changing rapidly. Retiring European Central Bank President Jean-Claude Trichet said the euro zone’s debt crisis requires “immediate action” in coming days. But earlier this week, a spokesman for German Chancellor Angela Merkel said a full-scale solution could take months to craft....READ MORE