Gold futures all set to fall

September 26th, 2011 - 10:03 pm ICT by Aishwarya Bhatt  

Los Angeles, Sept 26 (THAINDIAN NEWS) After the record swift run that saw the price of gold jump to $1,921 at the beginning of September, the tide seems to have turned. The precious metal has lost at least 20 percent of its value since it hit the record level on the 6th of September.

On Monday, the price of the commodity had dropped to $1,584.95 which represents a loss of 3.3 percent. This is the fourth day that the price of the metal had gone down since it hit the peak. The highest loss of the price of gold was when the price fell to $1,533.35. That marked the loss of 6.5 percent of the price of the metal and the lowest price of the commodity since the 8th of July.

Experts believe the strong US dollar is the reason why the price of gold is taking the beat. The conditions at the euro zone have also not helped matters. It is feared that, Greece may eventually default on its debt and has sent the euro struggling against the dollar.

The stocks around the world are suffering from the effect of the weakening euro and the Greek crisis. That though, will help push the price of gold up as it has proven to be the best bet for investors.

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