Subscribe to the BlogGold prices reached their multi-year high only few weeks back, but the flow of strong US economic data in terms of employment improvement and also in terms of better consumer spending has been pushing the prices down.
In the last two weeks the Gold prices have been dropping down almost every day and now the prices are hovering below the 1100 mark. That is a sharp drop of over 120 dollars an Ounce from the peak of over 1220 dollars achieved few weeks back. The sharp drop in the Gold prices in the last few weeks is also seen as a result of unwinding of long position by investors due to year end considerations.
One more reason for the dropping down of the Gold prices is the reducing tension in the Iraq – Afghanistan region due to the movement of additional troops from US from last week.
The majority of the investors are expected to start back their investments into Gold from the beginning of 2010 which is just one week away. So stay on with all your Gold investments without any worry, say
seasoned analysts.
Gold has always been the most valued and safe haven investment commodity not only for individuals but also for countries. In the year 2009, leading countries like China and India have been piling up tons of this yellow metal to shore up their reserves.