Wed Nov 22 2017, 2:04:12 +03

Prices of Gold on four years lowest

Author : , Published :


(Kuwait-AlummahWorld, Muharram 9, 1436, 02 Nov 2014) The prices of gold have seen an extreme drop last week, reaching USD 1,172 per ounce, which is the lowest price in the past four years, according to a specialized economic report.
According to KUNA, SABAYIKS Gold Kuwait company said in a report issues on Sunday that the rising of the US dollar's rate against the main currencies was an immediate factor for the drop of gold prices. Moreover, the report noted that the decision of the US Federal Reserve to halt plans for quantitative easing also affected the prices.

Another element in the drop was the decision of the Bank of Japan to pump extra liquidity into the domestic banking sector to shore up the economy, the company said. The short time gold prices took to go this low was surprising, the report noted, adding that it broke the long-time-held barrier of USD 1,162 per ounce.

Held in times of uncertainty and inflation, gold has been hit by news that the US economy grew 3.5 percent in the third quarter amid continued low inflation.
The market is focused on whether gold demand emerges from physical buyers in India and China, according to analysts.