Gold sags to two-year low

Gold fell to its lowest level in two years in London Thursday, slumping $7 to open at $373.50. In Zurich it fell $5, to $375.50. At the same time, the dollar chalked up gains against all the main European currencies.

London bullion brokers reported some early selling but volunteered no immediate explanation for the slump. Trading was not heavy.

''The dollar was stronger again (Thursday) morning, with the Fed draining funds overnight and Eurodollar rates tending higher,'' a London banker said.