The worst may be over as prices of gold rebounded after prices plummeted to nearly a 30-year low on Monday. The price of the U.S. dollar fell causing the price of gold to rise. The price didn’t rise significantly, but it gave investors hope that it will only go up from here.
When the price of gold slipped below $1,500 per ounce on Friday, many stop losses were activated, causing many investors to lose billions of dollars. Gold prices are not in the clear, as they could fall again in the coming week, which in turn, have investors on the edge of their seats.
In stock news, it was a significantly better day than yesterday. Gold Fields Ltd. was up nearly 2% at $6.38 while Randgold Resources Limited was up 1.87% to 70.33. The worse came from Barrick Gold Corp. who saw their stocks deflate 4.65% to $18.86. Like yesterday, Physical Asian Gold saw their stocks rising, this time 1.28%.
What was once a sure market, have many investors running for the hills and debating if the gold market is merely “a bubble” that may implode sooner than later. Guy Debelle, assistant governor of Australia’s central bank stated, “Gold often has a high price because people believe that other people believe that it’s worth a lot. When you describe other markets like that, the word ‘bubble’ gets thrown about.” And he may be right as more and more investors are jumping ship, significantly decreasing their gold investment. As the past few days have shown us, gold may not be as invincible as it once was.
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