Gold with highest drop of the price

Viliyana Filipova — Sun, 29 Nov 2009 10:51:33 +0000

The price of gold fell by more than 4 percent on the London Metal Exchange today after the appreciation of the dollar reduced the attractiveness of the precious metal as an alternative investment. Dollar increase after the news about the financial difficulties of the Dubai government investment fund Dubai World, which reinforced fears in financial markets. Dollar Index, which monitors the rate of the dollar against a basket of six major currencies, rose by 1 percent today, after earlier this week dropped to their lowest level in 15 months. As a result, prices of all precious metals fell, led by silver. Gold with immediate delivery fell to 50.28 dollars, or 4.2 percent, to 1 138.10 dollars an ounce. This is the strongest decline in the price from 12 January to date. The February gold futures cheaper by 2.1% to 1 163.60 dollars an ounce in electronic trading at the stock exchange in New York. Thursday marked the third straight gold price record only within the last week. Compared to last Friday the price of gold has risen by 1,1 percent. Precious metals will probably noted fourth consecutive weekly increase. Consulting firm Standard Chartered Plc today released a report which shows that central banks are likely to be net buyers of gold this year, which never happened in the past two decades. This week it became clear that Sri Lanka has purchased 10 metric tons of gold from the International Monetary Fund for 375 million dollars. Previously, India and the island countries of Mauritius, respectively, purchased 200 tons of gold reserves of the fund against 6.7 billion dollars and 10 tons of gold to 71.1 million.
Among other metals for immediate delivery in London Metal Exchange silver fell the most by 5.3 percent to 17.68 dollars per ounce, which is a record decline for the past three months. Platinum with cheaper 1.2% to 1 438 dollars an ounce and is not excluded to provide better than gold by the end of this year because of increased demand for metal from the industrial sector.

Financial Communique » London Metal

Gold with highest drop of the price