27.07.2015 - Gold price meltdown points to its waning lustre
Historically, gold buying has been fuelled in a scenario when the U.S. dollar has been weakening. This is how gold came to be bestowed a ‘safe haven’ status. The sharp decline in gold price early last week and the subsequent tepid buying of the metal in international markets point to gold’s clear falling out of favor among investors at least for now. Gold fell below the $1,100 per ounce level and sought its lowest point since April 2010 while in India, it slid below Rs 25,000 per 10 gram levels, falling to its 5-year lows. An improving U.S. economy, a consequently stronger dollar, an expected rise in interest rates by the U.S. Federal Reserve and an expected slowing of demand for gold from China have been attributed as key factors for the bearish streak last week...............................................Full Article: Source
Print