/ 26 April 2013

Euro fears and slow growth in China, US could boost gold

Euro Fears And Slow Growth In China, Us Could Boost Gold

The gold price — which last week plummeted to its lowest level in two years — reached a $1 900 dollars-an-ounce high in 2011.

On April 16 the price dropped to $1 321 an ounce — a shock for many market analysts who believed the metal still had a year or two of high prices ahead of it.

The price recovered slightly and this week gold traded at $1 440 an ounce, perhaps helped by weak economic data from Germany that spurred speculation that the European Central Bank may cut interest rates.

Bullion began to lose ground following increasingly positive economic data coming out of the United States, which gave investors confidence to look for assets that could generate an income or had growth potential.

But continued trouble in the eurozone and slowing growth in China and the US could still help the metal find its shine once again.