Thursday, 17 May 2012

Has Gold Lost Its Shine?

Gold Prices
From its peak of $1,921 intraday, last September, Gold has lost about 20 pc of its value. The decrease in price has been put down to the uncertainty that has been surrounding the Euro-zone debts.

Although, in times of crisis traders normally turn to precious metals, but sometimes this would not be the case since as losses occur in other assets traders are holding, they would have to liquidate their Gold holdings (positions) to release more capital (margin) for compensating those losses.

Also, some of that money could have gone to purchasing the USD as the Dollar Index has been climbing steadily in recent days.

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