August 24, 2011: 3:33 PM ET
NEW YORK (CNNMoney) -- Gold prices dropped sharply Wednesday after a surprisingly strong report on new orders for durable goods dashed hopes of more easing from the Federal Reserve.
Gold futures for December delivery tumbled $95.80, or 5.1%, to settle at $1,765.50 an ounce -- the lowest level in a week.
The retreat comes after a powerful rally in the gold market sent prices skyrocketing above $1,900 an ounce earlier this week. Gold started the year just above $1,400 an ounce.
Investors have been flocking to the precious metal for weeks as global economic and debt concerns have weighed on riskier assets such as stocks. Gold is seen as a safe-haven asset and prices tend to spike when investors get nervous.
NEW YORK (CNNMoney) -- Gold prices dropped sharply Wednesday after a surprisingly strong report on new orders for durable goods dashed hopes of more easing from the Federal Reserve.
Gold futures for December delivery tumbled $95.80, or 5.1%, to settle at $1,765.50 an ounce -- the lowest level in a week.
The retreat comes after a powerful rally in the gold market sent prices skyrocketing above $1,900 an ounce earlier this week. Gold started the year just above $1,400 an ounce.
Investors have been flocking to the precious metal for weeks as global economic and debt concerns have weighed on riskier assets such as stocks. Gold is seen as a safe-haven asset and prices tend to spike when investors get nervous.