The price of gold broke out on the downside Sept. 7, shedding more than US$14 per oz. to close at $350.10 on the Commodity Exchange of New York (Comex). Late the next day, the price was holding firm — at least temporarily — at slightly above $350.
For gold bulls, this is a serious turn of events. Hardly two months ago, bullion touched better than $410 per oz. But a precipitous decline soon followed when the yellow metal traded down to the $370 mark. With this latest major decline, however, the bulls might turn bearish.
Currency turmoil in Europe, heavy speculative purchases during the runup in the gold price earlier this year, heavy Chinese buying — these factors and others fueled the first-half rise.
One New York gold analyst was quoted as saying the gold sector “had a hell of a year” so far. Gold bulls are praying the remainder of the year isn’t hellish.
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