The reason why world gold prices are in free fall 3
Last weekend, gold futures contracts in New York (USA) sometimes dropped to 1,497.60 USD an ounce, the lowest since July 2011. Closing on April 12, the spot price of gold was only 1,477 USD.
Many reports said gold prices fell due to investors’ automatic cut-loss selling orders.
Jeffrey Nichols, senior economic advisor at Roslind Capital commented: `In my opinion, there is no obvious reason for the mass selling other than the automatic selling order on the computer. It’s like having people in the movie theater.`
World gold prices have continuously decreased since last week.
Prices dropped sharply partly due to investors’ optimism about the US economic situation.
Another reason is that on April 11, the trio of creditors – the European Commission (EC), the European Central Bank (ECB), and the International Monetary Fund (IMF) announced that Cyprus needed to mobilize nearly
Forecasts of a series of large financial organizations also contribute significantly to the market trend.
Societe Generale Bank also previously said that gold prices are in a bubble period.
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