Gold closed 3 percent lower on Wednesday as investors sold the precious metal and bought stocks after a German court declined to block Germany's participation in euro zone bailouts. Both the spot price of gold and US gold futures fell below $1,800 an ounce before settling off the day's lows. The selloff came after the precious metal hit record highs above $1,920 on Tuesday.
Stocks on Wall Street jumped 2 percent, rallying with shares on other major exchanges, after Germany's top court rejected lawsuits aimed at blocking Berlin's involvement in emergency loan packages. Chancellor Angela Merkel called the ruling a validation of her eurozone policy.
At 4.00 pm EDT (2000 GMT), spot gold was at around $1,815 an ounce, down $57 from the level seen in New York late on Tuesday. It hit a low of $1,793.19 during Wednesday's session. In the futures market, US gold for delivery in December finished down $55.70 at $1,817.60 an ounce, moving between $1,883.20 and $1,793.80. Among other precious metals, silver was down about 1 percent at below $42 an ounce and spot platinum was down 1.8 percent at under $1,820 an ounce.
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