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Gold Prices Plummet, More Losses Expected

Since the beginning of April, Gold prices have been on a roller-coaster as they have faced several issues which caused Gold to rise and fall throughout the past few weeks.

Earlier this month, the non-farm payroll data provided by the US index called Standard and Poor showed that the job hiring patterns in the US has been declining. It also showed that the labor concentration was easing up and that more and more manufacturing firms were willing to cut down on labor  This made fixed commodities like Gold to soar and thus Gold went on a price hike reaching $158 after a small dip. At that time, nobody expected any major news that would cause a fall in the price. However, after a couple of days, the prices fell slightly but still retained a value above $145


The first news that caused Gold investors to rethink their option was the fact that the European country of Cyprus was planning to sell its gold reserve. This caused a pandemonium as investors started selling their Gold while the price was high as they feared a decline once the Cyprus government released its Gold into the market. This action by Global investors caused a fall in the Gold price in the next week itself causing the rates to reach as low $130.

Further aggravating the Gold decline was the news that other central banks in Europe would be willing to sell their own Gold reserves to make money for bailout in the event that they should need one. This caused a heavy fall in the market and more investors bailed on the commodity. The Italian government’s precarious position in the EU also caused ripple effect pushing down Gold and maintaining it at a value of $130.

Earlier last week, Gold prices which had fallen, began to attract bargain traders and buyers from countries like China and India. This has caused the Gold prices to rise slightly and this can be seen from the price which has gone up by around $6 standing at a price value of $136.  It is expected that the Gold value will take a nose dive in a couple of days.

Eddie Miller, is a blogger, technologist, trader and the Man Behind BinaryPedia.com.

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