Gold sees sharpest fall for decade

Gold prices took a nose dive overnight as investors u-turned on risk assets ahead of an expected round of further stimulus in the US, leaving the price more than $160 lower.

The sharp correction - its steepest fall in at least a decade in dollar terms - left gold around 9% lower at $1,742, the precious metal having hit a new peak of $1,911 on Tuesday. The fall came as positive economic data emerged from the US. The latest durable goods orders for July increased sharply, while investors were also buoyed by expectations of more quantitative easing, which has lifted markets in recent days. Despite the sharp fall, gold remains around 40% higher than the start of the year. As risk aversion diminished, Treasury yields also rallied. The yield on the benchmark...