XAU/USD -The gold price fell yesterday to a good $1,200 per troy ounce and thus hit its lowest level since the beginning of January. After recovering briefly - rumours about capital controls in Russia and weaker US economic data resulted temporarily in higher demand - gold is trading back at its nine-month low this morning. -The reason for the price slide was the significantly appreciating US dollar after the core inflation rate in the Eurozone declined surprisingly to 0.7% in September, thus increasing the likelihood of the ECB introducing QE. -Consequently, the EUR-USD rate dipped below the 1.26 mark for the first time in a good two years. The other precious metals also found themselves under considerable pressure in golds slipstream: silver shed 3% on a closing price basis and slid below the $17 per troy ounce mark for the first time since March 2010.
Posted on: Thu, 02 Oct 2014 01:57:35 +0000
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