Gold Loses Its Luster in Thursday Trading

Gold bullion
Gold bullion

Gold prices suffered their biggest one-day drop since early February after the European Central Bank's emergency funding programs suggested the Continent's financial system may not be as wobbly as initially thought.

Gold futures for August delivery fell $44.60 to $1,201 an ounce on the Comex division of the New York Mercantile Exchange (CME) Thursday.

The ECB said it will lend banks more than 111 billion euros, or about $136 billion, for six days to smooth the transition from the expiration of a 12-month loan program Thursday. On Wednesday the ECB said European banks took three-month loans totaling 132 billion euros, which was less than economists forecast. The euro vaulted on the news, adding 2.2% to $1.2493.