Gold has its biggest fall in 30 years

A technician prepares one kilogram gold bars of 995.0 purity to pack for delivery at the Emirates Gold company in Dubai. (File photo)

 

Tue Apr 16, 2013 12:37AM

Gold had more than doubled since the start of the 2008 global economic crisis and it price rose 30 percent in 2010 and 25 percent in 2009. In August 2011, gold price jumped its all-time high of $1913.

Global gold prices have plunged more than nine percent in a single day, its biggest one-day decline since 1983.

On Monday, the price of gold dropped $140.30 to $1,361.10 an ounce, The Associated Press reported.

The precious metal has plunged $200 an ounce, or about 13 percent, during the last two trading days, its lowest level in over two years.

Last week, Goldman Sachs, an American multinational investment banking firm, in a research report predicted that gold prices would fall.

Goldman Sachs said, “The decline in prices since last fall and our updated forecast suggests that the turn in the gold price cycle is likely already underway. As a result, although our US economic forecasts point to modest near-term upside to gold prices, we believe that a sharp recovery in prices to our previous price forecast is unlikely.”

“In fact, we suspect that if indeed our forecast for further declines in gold prices proves correct, the fall in prices could end up being faster and larger than we expect,” it added.

Gold had more than doubled since the start of the 2008 global economic crisis and it price rose 30 percent in 2010 and 25 percent in 2009. In August 2011, gold price jumped its all-time high of $1913.

GJH/AS