Gold prices fall to lowest level in 3 months as European financial worries wane

Gold drops as European financial worries fade

NEW YORK — Gold prices have fallen to their lowest levels in three months as European financial concerns dissipate.

Analysts say the drop in gold was exacerbated by automatic sell orders that investors often put in place to minimize losses.

Gold is down $25.20, or 2.1 percent, at $1,161.80 an ounce.

Two big European banks, UBS and Deutsche Bank, both reported strong quarterly profits Tuesday. The earnings came a few days after regulators said nearly all banks in Europe could withstand a weakening economy and mounting government debt problems across the continent.

Rising confidence in Europe’s financial system has cooled interest in gold, which rose in May and June when investors were worried about the euro.