Sudden drop for gold in the Far East. On the Hong Kong market, the price of the yellow metal fell below 1.600 dollars an ounce, reaching 1.575,80 dollars against the 1731,18 recorded just last Friday. This month alone, the fall was 15%, the largest since the dark days of October 2008. It appears that traders have started selling gold to boost investment in dollars, which are surging against other currencies. “The price of gold reflects additional short-term pressure as investors get rid of their gold positions to get fresh money,” explains Becky Yuen, an analyst at GuocoCapital.
Silver also fell 16% this month to $26,04 an ounce, the lowest since November 2010, before recovering to $27,97. “Many have underlined the risk that the tendency to purchase gold is excessive, considering that its price has continued to rise in the last four years – underlines Song Seng Wun, economist at Cimp research in Singapore – and with the crisis of debt that is left over, it is necessary to identify safe investments, which at the moment are dollars and US bonds”.
