Improving US economy shrinks investor interest in the metal
The price of gold bullion has dropped to a three-month low following positive growth in the US economy.
A Financial Times report described the dollar price of bullion as dropping to a low of $1,322.70 a troy ounce, the lowest since October and a 7.5 per cent decrease from its record high of $1,430.95 in December. The shift in price has been driven by a perception that US economic recovery is on track.
Gold prices soared 30 percent between the start of 2010 and the high seen in December. Tom Kendall, precious metals analyst at Credit Suisse, recommends investors buy into the dip in the gold price in expectation of a further price rise. However the fall in gold price has also effected silver, with the metal’s price falling to a two-month low of $26.54 a troy ounce, down 15 per cent in three weeks from a 30-year high of $31.22.