Certified Gold Exchange Daily Market Update Posted by Brian Ford on June 26, 2013
The certified gold price fixed in the London and New York markets fell in spectacular fashion on Wednesday morning. By noon CST gold had fallen from a perch of $1256 to as low as $1222 due to a multitude of factors.
The U.S. dollar index grew to a three-week high and this had a negative effect on the gold price. Additionally, China’s economy has been growing at a pace slower than previously expected, and this news tightened the purse strings of Chinese citizens and institutions who would have otherwise bought gold. India played a role in the declining gold spot price, too, as new tariffs have made it tougher for Indians to import gold from other countries.
The fallout from last week’s Federal open Market Committee (FOMC) meeting has continued to plague the gold investing market, as individuals’ fears that the federal reserve could soon wind down stimulus measures played on the gold price. The general fear among investors is that once stimulus measures are slowed or stopped the U.S. economy will go into freefall. While that could be positive for gold in the long run, the fear over a collapse of the dollar or of our entire economy has caused many investors to hold steady with their positions or even sell in some circumstances.
Kitco news reported earlier this week that gold’s technical bottom could be as low as $1154, and the economic data this is due to be released during the rest of this week will dictate whether or not that bottom is realized. Visit the Certified Gold Exchange Daily Market Update page next week for further insight on certified gold prices.