HK gold tumbles more than 40 dollars

HONG KONG (AFP) - Hong Kong gold prices tumbled on Friday to close at 1,145.00-1,146.00 US dollars an ounce, sharply down from Thursday’s close of 1,187.50-1,188.50 dollars. Gold opened at $1,186.00-1,187.00.
The precious metal had struck a record $1,195.13 per ounce in trading on the London Bullion Market Thursday.
The fall follows a day of turmoil in global equity and commodity markets, as investors seek safer assets amid alarm about the potential for a widespread default after Dubai’s shock demand to suspend the debt of a key state company.
The government of Dubai rocked financial markets on Wednesday when it said it would ask creditors of its Dubai World conglomerate, which has reported debts of 59 billion dollars, for a debt moratorium of at least six months.
“Fallout from Dubai World seeking a debt moratorium has been broad. It is not the amount involved but potential contagion that will drive markets,” Patrick Bennett, Asia rates strategist at Societe Generale told Dow Jones Newswires.