Gold falls from 12 week high as commodities continue to tumble
Adam Pike, News Editor
14 Jan 2015, 2:09 p.m.
The gold price retreated yesterday from its recent 12 week high as the broader sell off in base metals and oil took its toll on the yellow metal. The slump in the oil price continued and the copper price fell to a new 5 and half year low. The gold price has fallen £10 per ounce from yesterday’s high to now trade at £810 per ounce.
Copper fell 8.7% at one point before recovering to a daily fall of 5% over worries the global economy is slowing. The World Bank lowered its global growth forecast for 2015 and 2016 highlighting the slowdown in the Eurozone, Japan and emerging markets.
The strengthening U.S. dollar also put downward pressure on the gold price. A stronger dollar makes gold purchases more expensive in other currencies and dulls its appeal as a hedge against the U.S. dollar. The dollar is now trading at a nine year high against the euro as traders anticipate the ECB to announce further stimulus measures when they meet on the 22nd of January.
Gold is currently trading at 809.80 per ounce, silver at £10.97, platinum 812.41 per ounce and palladium £522.05 per ounce.