Skip to comments.Global gold price hits 3-year low
Posted on 06/20/2013 9:43:19 PM PDT by TexGrill
Gold fell to its lowest price in three years after US Federal Reserve chairman Ben Bernanke said stimulus measures might be reduced this year as the US economy recovers. Market expectations are for the price to fall below US$1,300 (about Bt40,480) an ounce this month, while the local gold price declined slightly, eased by appreciation of the baht. Gold for immediate delivery dropped as much as 3.4 per cent to $1,304.75 an ounce yesterday. Bullion for August delivery sank 5.1 per cent to $1,303.30 an ounce on the Commodity Exchange in New York.
In London, gold fell to the lowest in more than two and a half years, exceeding the drop in April.
Gold has slumped by 22 per cent so far this year amid speculation the Fed will pare its quantitative easing (QE), which helped the metal cap a 12-year bull run last year. Bernanke said the US central bank, which currently buys $85 billion of Treasury and mortgage debt each month, might begin reducing purchases this year and end the programme in 2014 should the economy continue to improve.
Thailand's Gold Traders Association adjusted its local gold price 10 times yesterday, with gold bar selling at Bt19,150 per baht weight.
Kritcharat Hirunyasiri, president of MTS Gold (Mae Thong Suk Group), said the global price was highly volatile on concerns over the likely tapering off of US monetary stimulus. The price is expected to continue its decline, he said.
"The gold price will likely decline consistently and is expected to go down below $1,300 an ounce soon. The local price has been highly volatile, however, softened by the weakening baht," he said.
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Admit it, you made up the author’s name.
It would have taken too long to write a name such as that one. Even doing the copy-and-paste was time consuming.
Gold is at $1290.80 right now, so I think that's a pretty safe prediction, that it will go under $1300.00 soon.
He's probably addressing a contract price that may be higher right now.
The old saw, “knows the price of everything, the value of nothing...” seems appropriate here.
I have unilaterally determined that the price of dollars in troy ounces of my gold is 0. Get your popcorn ready if they keep pushing the fiat price lower. You have to love a game of chicken.
I started swearing and turned off my radio. Supply and demand be damned, it's all about marketing.
“They” love jacking it around right at the even hundred dollar mark for days and days, then whoosh it moves a hundred dollars (down) in two or three days at the most. The goldbugs have been saying for some time that the days of daily hundred-dollar moves are coming soon, and are quite chagrined that they seem to be only in the one direction.
Value is something that anyone can feel no matter what. A transacted price has to be agreed upon to the point where everyone is forced to accept it as fact.