Gold Price Falls by 9.3%

Due to the slow progress of the Chinese economy and the possible sale of reserves by Cyprus, the price of gold closed at $1,361.1, its lowest level since 2011.

Tuesday, April 16, 2013

"At the end of the first session of the week, at the Mercantile Exchange in New York, the most traded contracts for gold, due in June, lost $140.3 an ounce (a drop not seen in three decades) to end up at their lowest level since February 2011," noted an article in

The fall was caused by the slowdown in the world's second largest economy, which in the first three months of 2013 increased by 7.7% which is two points less than in the last three months of 2012.

Another reason contributing to the price collapse is the possibility of Cyprus selling some of its metal reserves to fund part of the European bailout that has been cited in recent days.

"Anyone who has made a purchase before this big drop is probably suffering," said Donald Selkin, chief market strategist at National Securities Corp. in New York. "The impression is that gold is not necessarily a safe haven. People are watching the market and are surprised, and there is no inflation. Therefore they are asking 'why do we need gold?'" he added.

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