Reasons behind Gold price decline 7- May, 2013 — for sure all of us especially gold traders want to know why Gold price decline? – it is a good question- for sure when you see a shake in gold price, and a decline by 1.48% at May 07, 2013 10:34 NY Time. You should ask about the reasons behind Gold price decline, I will answer you.
Equities Push gold price down
Gold price declined after the Trust in US stock market increased. The issue which lead to the decrease of volume trading on Gold and the increase of buying the US stock because of the positive job data released from USA, which mean the improvement of USA economy. So the investors consider USA recovery pushed them to buy US stock and get away from Gold market. In the last few days Gold price was not stable enough and watch a lot of fluctuate, frankly we can not blame the investors for buying the US stock, US stocks made a high level of profits and that is what investors search for, the fast profit. I can say we will watch a decline in US stock due to the profit gaining and the return to gold market soon, then we will watch a profit gaining in Gold market and the return to the US stock etc…..
ETF wearied actions
we watch a decline on Monday by 0.3% to reach the level of 1,062.30 tons of gold, what a surprise its SPDR Gold Trust, recorded its lowest level since August 2009.
ETF in general we can say it record an unexpected decline today. The physical gold still tight for some.
Untrusted Euro zone
Euro zone became untrusted market especially after the rate cut, most of investors head away from the Euro market to the US market. Gold price in the stock exchange of London recorded a decline by 1.23% in the PM session to reach the level of $1444.25 USD/ounce of gold. Euro zone face a lot of crisis and a lot of unstable condition. the financial indicator for Europe decline even in Germany, the strongest economy in the Euro zone. The issue which indicate by an expected disaster in the Euro area and their return to buy gold as the safe heaven even the Central Bank in Europe, to overome the expected disaster.