As the word’s economy appeared to be nearing another great recession, the price of gold was quickly climbing the roller coaster ride of a lifetime. Something in the market changed and within two days the price had dropped by £103.87. Does this signal the end of the ride?
Investors are nervous, and rightfully so. As gold continued to climb, economists and market analysts were urging investments in gold as global economies appeared to be collapsing all around them. However, on Wednesday the ride came to a sudden and almost unexpected halt, at which point the price of this precious metal began to suddenly drop.
Within two days the price of gold was down to £1092.44, a loss of £103.87 from Tuesday’s high of £1,139. It appears that as economic data was being released that indicated economies were not as close to recession as had been anticipated, the value dropped radically within just a 48 hour timeframe. Now there is some amount of consternation as to the future of gold.
Should investors sell and get out whilst they can? Should this signal the opportunity to buy while the price is back down? Should they hold in anticipation of further data that is expected to show the global economy is in dire straits? It’s anybody’s guess, but the consensus appears to be that this is just a temporary slip. It is projected that gold will begin another bullish run uphill in weeks to come because markets are projected to remain weak overall.
It is the lack of stability in the Middle East, in north Africa and indeed the faltering Eurozone and US economies that is the ultimate cause for such a steep incline in the price of gold. Global instability is always a trigger to buy precious metals, especially gold, and if things don’t improve soon, there is every reason to believe the price of gold will reach new historic highs.
