News - The sharp fall in gold from 1.900 to 1.750 dollars an ounce. Is gold over $ 1800 a bubble?
The price of gold accelerated the decline, and during the day and more than four percent. During Tuesday 23.8.2011 price of gold attacked new records and came to over $ 1911 per oz (oz; 31,1 grams), during the date 24.8.2011 fell to around 1,750 dollars per ounce. The metal is moving in the vicinity of the weekly minimum. For the drop in prices appears to be a technical correction.
Fall of the price from 1911 USD/oz to the 1750 USD/oz is the decline of almost 10% in one day! A one-day plunge is exceptional even for stock indices. Do you still think, that investments in gold is non-risk investments ??
The yellow metal is squeezed down surprisingly favourable statistics from the United States. Part of the investors so she reached for the selection of the profits that they brought the rise in the price.
"Investors were taking advantage of the gold more as the barometer of fears, than as an insurance policy against inflation," said Adam Klopfenstein, an analyst for Bloomberg from MF Global Holdings.
"This commodity has become extremely popular among investors and hedgeovými funds, even if the technical indicators suggest that it is overvalued. It was only a matter of time before the market hit the ceiling, " said Reuters their view of dealer options on gold from the Arbitrage LLC Mihir Dange.
Analyst Carl Firman from the financial company VM Group noted that the development of gold prices will have a major impact, whether the Fed will turn to the next promotion. Then it would depend on what form the aid would be possible. But investors are inclined to the view that more quantitative easing is unlikely.
Gold from the beginning of this year, strengthened by 28 percent. "The developed world, the prospect of very sluggish growth, high fiscal deficits, rates close to zero in the perspective of several years, inflationary pressures in the emerging economies and higher rates of economic and political uncertainty, simply returns to the good old proven form of wealth," adds to the gold Mohammadian-Molina from Barclays
