| China's stock market crash was big news. But lost in the headlines was the commodities rout. Everything from copper to oil, cotton to sugar has been hit. And unlike stock markets, commodities have an impact on everyday lives. From farmers to miners to consumers to governments, lower prices mean less money and fewer jobs. Gold is often seen as a store of wealth in uncertain times. But right now, gold has tumbled below $1,100 an ounce to a five-year low. So what is behind the fall?
With economic growth around the world slowing and expectations of a rise in US interests by the end of the year, the dollar is strengthening - making gold less attractive. That has led some to predict that gold prices could fall to as low as $750 an ounce. That is a far cry from the $1920 it hit during the financial crisis...............................................Full Article: Source
|