The future of gold halts losing its streak to finish higher. It’s in its worst slump ever. Reasons for the fall in Gold price:
The strength of the US dollar
Interest rate rise
Chinese economy
Technical trades
Gold Prices have also affected Gold mining industry .Barrick Gold fell about 15pc, London Randgold Resources saw the fall of about 4.7pc and Mexican precious metals miner, Fresnillo had a loss of about 4.4pc. Gold closed this week at a 5 year low, under $1000 per ounce. It has lost 16pc of its value in the previous year. If the gold prices steadily declines, then probability of them crashing through the psychologically importance of $1,000 resistance level by the end of October is high.
Gold’s dual nature as a commodity and currency served well during bull market years. Both the alternatives to dollar and commodities, is now hurting the consumers and investors despise it alike. However, there are counter-arguments to this. There exists those who argue that current fall in prices offers a good opportunity for potential buyers.
The strength of the US dollar
Interest rate rise
Chinese economy
Technical trades
Gold Prices have also affected Gold mining industry .Barrick Gold fell about 15pc, London Randgold Resources saw the fall of about 4.7pc and Mexican precious metals miner, Fresnillo had a loss of about 4.4pc. Gold closed this week at a 5 year low, under $1000 per ounce. It has lost 16pc of its value in the previous year. If the gold prices steadily declines, then probability of them crashing through the psychologically importance of $1,000 resistance level by the end of October is high.
Gold’s dual nature as a commodity and currency served well during bull market years. Both the alternatives to dollar and commodities, is now hurting the consumers and investors despise it alike. However, there are counter-arguments to this. There exists those who argue that current fall in prices offers a good opportunity for potential buyers.
0 comments:
Post a Comment
Note: only a member of this blog may post a comment.