Gold tanked after its safe haven appeal was diminished by positive German business confidence data that was released today, soothing concerns over Ireland’s debt problems.
Earlier today, Moody’s cut Ireland’s debt rating by five notches to Baa1 with a negative outlook.
However, the Ifo Institute said that its German business climate index climbed from 109.3 in November to 109.9 in December.
Gold got a little support from a decline in the US dollar, which is seen as an alternative asset to the yellow metal.
Gold last traded at US$1,367/oz.
Silver and platinum followed, sliding to US$28.78/oz and US$1,687/oz respectively.
Randgold Resources (LON:RRS) posted a small loss, while most other mining stocks were on the rise.
Peer African Barrick Gold (LON:ABG) rose marginally, while silver miner Fresnillo (LON:FRES) and platinum producer Lonmin (LON:LMI) climbed 1.6% and 1.7% respectively.
In the FTSE 250, Aquarius Platinum (LON:AQP), silver producer Hochschild Mining (LON:HOC) and gold miner Petropavlovsk (LON:POG) declined marginally.