US stocks drop, gold reaches recordBy DPA, IANS
Monday, November 8, 2010
NEW YORK - US stocks fell slightly and gold rallied to a record high Monday amid more concerns over Europe’s debt situation.
Investors looked nervously towards a pending European Union review of Ireland’s fiscal situation. Some have speculated that Ireland and Portugal could soon request a government debt bail-out from the EU.
The price of gold rose above $1,400 per ounce for the first time in New York trading, as a weak economy and government deficits have driven investors back into metals.
The blue-chip Dow Jones Industrial Average fell 37.24 points, or 0.33 percent, to 11,406.84. The broader Standard and Poor’s 500 index was down 2.6 points, or 0.21 percent, to 1,223.25. But the technology-heavy Nasdaq Composite Index inched up 1.07 points, or 0.04 percent, to 2,580.05.
The Dow had climbed Friday to levels not seen since before the collapse of Lehman Brothers in September 2008, which provoked a massive global financial crisis. Investors were buoyed by a new Federal Reserve plan to buy $600 billion in government bonds.
The US currency climbed against the euro to 71.83 euro cents from 71.26 euro cents Friday. The dollar rose against the Japanese currency to 81.17 yen from 81.29 yen.