Gold prices fell on Monday as investors took the opportunity to lock in profits following Fridays rally. Overnight the sell-off continued with gold dropping 1.68% in 24 hours to £725.95 per ounce.
Gold is typically held as hedge against a falling dollar with investors rushing into the yellow metal on any sign of dollar weakness. It’s not surprising gold’s recent decline has coincided with a strengthening dollar. The dollar has risen 10% against a basket of international currencies since July.
With the Bank of Japan debasing Yen with yet another quantitative easing program and bankers in Europe calling for further easing by the European Central Bank, many are suggesting the dollar’s ascent is set to continue.
Gold is currently trading at £725.95 per ounce, silver £9.83 per ounce, platinum £755.36 per ounce and palladium £481.60 per ounce. The gold silver ratio has narrowed slightly to 73.8.