The gold price has fallen 7.6% (£-79.26/ oz t) in the last three weeks, approaching levels not seen since January this year.
The decline was accelerated by an overnight plunge of 1.75% after a statement from the Federal Reserve on Wednesday, in which they asserted that their fiscal tightening policy is set to continue. The probability of further interest rate hikes in June was upgraded from 67% to 97% as a result, putting downward pressure on gold as Treasury bond yields and the dollar both rose.
The Fed affirmed that they remained confident in the US economy, claiming that slower growth in Q1 was merely 'transitory'. Should this prove to be false, the downturn in the gold price is unlikely to continue for too long.
We have seen a positive reaction to the falling gold price, with a surge in demand from customers looking to take advantage of the lowest prices in a while.