Gold Prices Plummet Due to Eurozone Crisis, Profit-taking
The price of gold continues to plummet due to strong growth in the value of the dollar. The European financial crisis continues to take a toll on the Euro and strengthen USD/EUR currency pair such that the value of the dollar continues to rally.
A strong dollar in investment theory and usual practice calls for weaker prices of the precious commodity that is gold.
According to a recent report from Bloomberg, Gold futures for February delivery declined 2 percent to settle at $1,564.10 at 1:47 p.m yesterday. on the Comex in New York. The price dropped for the fifth straight session, the longest slide since October 2009. The commodity headed for the first quarterly slump since September 2008.
Gold prices have advanced 11 consecutive years and have gained as much as 10% this year.
The recent lull in prices has also been attributed to profit taking by investors who have held positions for many months, if not years.