Gold price continued a series of declines that began last week, the precious metal loses about 5% of its value during last week’s trading.
The declining wave for gold price came to be the longest series of losses for the precious metal in 4 years. The USA came by a lot of plans to stimulate the domestic economy, which raise the value of the U.S. dollar to the highest level since 2008 against a basket of major currencies.
The Global gold price declined by about 20% since the beginning of the year, amid by a clear recovery of the global stock markets and appreciation of the dollar against other major currencies, where the price of an ounce on Monday, was about $1345.44 USD/Ounce of gold.
Why Gold price declined?
Indeed, the most prominent reason behind the decline of gold price around the world is the arrival of a high record level of elevation, where the continued rise of gold price lasted for about 12 years continuously.
The current downturn of Gold price as a logical reaction following by a rally that lasted for more than 12 years, Gold for investors was the safe haven through several economic crises. Global crises was the most prominent for the mortgage and sovereign debt that hit the United States, Europe and several Asian countries and developing countries.
Also contributed to the decline of gold prices really rise in stock prices in several global exchanges. The money market rebound in a large number of countries, which prompted investors to invest in the direction of other financial instruments, and reduced global demand for the precious metal.
Influenced by the price of gold as well as higher U.S. dollar exchange rate to the highest level in 5 years against a basket of major currencies. we Had witnessed the escape of investors from gold to the market of currencies and end the legend of gold safe heaven.