LONDON, March 2: Gold fell below $660 an ounce for the first time since Feb 21, on Friday as shaky global share prices prompted investors to reduce positions in commodities.

Investors often buy gold as a safe bet when financial markets look unstable, but investors are keen to unload the metal after plunges in global equity markets this week, analysts said.

Many investment funds were seen to have bought commodities, including gold, over the past month with the proceeds from stocks as Wall Street reached record highs last month.

Gold is not glittering any longer as a safe haven, Dresdner Kleinwort analysts said in a market report.

Commodities in general are perceived as risky assets...This asset class is just sold to reduce portfolio risk and to take profits in order to compensate losses suffered in other assets like equities, the bank said.

Thus, as long as unwinding of yen carry trades continues and equity prices head south, gold and silver remain in the wake of bear markets.” As of 1117 GMT spot gold was at $661.70/662.40 per ounce, down from $662.60/663.30 in New York on Thursday. It fell as low as $657.90 on Friday, the lowest since Feb. 21.

The pan-European FTSEurofirst 300 index was down 0.2 per cent by mid-morning in London after losing 5 per cent in the past three sessions.—Reuters