The Gold Price Tumbles
2017-09-12T12:10:40
Daryl Jackson, News Editor
12 Sep 2017, 12:10 p.m.
Gold prices reached their lowest in over a week on Tuesday. Spot gold slipped 0.1 percent to $1,325.11 an ounce after earlier touching its lowest since September 1st at $1,322.85.
The metal fell 1.4 percent in the previous session, its biggest one-day percentage decline since early July.
John Sharmer, economist at National Australia Bank said:
"The lack of an expected North Korean missile launch, and expectations that Hurricane Irma will have less of an impact than previously anticipated led to a rekindling of 'risk-on' sentiment,"
But what else could be contributing to the falling gold price?
Well, Hurricane Irma was downgraded to a tropical storm on Monday after wreaking havoc across Florida. It had been called one of the most powerful Atlantic storms on record.
Fears over North Korea seem to have also quietened down. There haven’t been any further nuclear tests and the United Nations have stepped up sanctions against the country. The sanctions target gas and oil imports and ban textile exports from the secretive state, as well as limiting the number of foreign workers it can send abroad.
"The lack of an expected North Korean missile launch, and expectations that Hurricane Irma will have less of an impact than previously anticipated led to a rekindling of 'risk-on' sentiment,"
But what else could be contributing to the falling gold price?
Well, Hurricane Irma was downgraded to a tropical storm on Monday after wreaking havoc across Florida. It had been called one of the most powerful Atlantic storms on record.
Fears over North Korea seem to have also quietened down. There haven’t been any further nuclear tests and the United Nations have stepped up sanctions against the country. The sanctions target gas and oil imports and ban textile exports from the secretive state, as well as limiting the number of foreign workers it can send abroad.
Meanwhile, North Korea has threatened that America would pay a "price" for spearheading the measures against it.
So, will the demand for gold continue?
Yes, according to Sharma, who added:
"We expect continued - although somewhat restrained - demand for gold due to continued economic and geopolitical uncertainty, which should keep gold slightly above $1,300/oz in the near future,"
However, analysts at Bank of America Merrill Lynch said in a note on Monday that the U.S. currency could remain supportive for gold, with the precious metal on track to hit its $1,400 per ounce target in coming months.
So, will the demand for gold continue?
Yes, according to Sharma, who added:
"We expect continued - although somewhat restrained - demand for gold due to continued economic and geopolitical uncertainty, which should keep gold slightly above $1,300/oz in the near future,"
However, analysts at Bank of America Merrill Lynch said in a note on Monday that the U.S. currency could remain supportive for gold, with the precious metal on track to hit its $1,400 per ounce target in coming months.
