Europe appears to be in a mess and investors in the U.S. will face presidential election next year. In this scenario it is not possible for investors to be optimistic. Even gold which was considered to be safe haven was giving way.
In this unstable condition investors are booking profits and therefore gold appears to be the best option since it has risen sharply during last couple of months.
The Dow Jones Industrial Average slid by 1.1% or 131.46 points to 11,823.48. Out of its 30 components, 23 fell. The main loser was heavy-equipment manufacturer Caterpillar Inc. which fell by 4.4%.
The S&P 500 Index was down by 1.1% or 13.91 points at 1,211.82. All of 10 S&P industry groups closed lower.
The Nasdaq Composite Index dropped by 1.6% or 39.96 points to close at 2,539.31. At the New York Stock Exchange, 928.9 million shares changed hands where the ratio of losers to gainers was 5 to 2. At the close of the session, NYSE Composite volume stood at 4.2 billion.
The euro was at its lowest level in a year at $1.30 per euro. Gold dropped sharply to $1,586.90 an ounce for February delivery after losing $76.20.
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