Just few days back, gold reached almost $1250 per ounce level: this is the new current all time high record rate at which gold has been ever traded. Buyers were very interested in investing their money in gold rather than in stock markets, forex etc.
But just after 4 business days, a huge drop in gold rate was seen. The all time high record was broke on 12 May 10 [update: just recently, a new record price of $1263 was reached] but then on 19 May, gold price was dropped more than 30 dollars.
On 19th, the rate reached ~$1186 from approximately $1216.
You can see that trading in gold is quite a risky business. In just one day, change in the price of gold was above $30.
I was reading an online article about this big correction in gold price: the author mentioned that the recent two days decrease in gold rate was a record correction in the past 10 or so years. I am not sure whether it’s true or not : ) as I could not confirm this information in other authority sites.
In some other articles, authors described the last week decrease as one of the biggest deceases in the past few months.
If you are a gold investor then be really careful in making decisions. This is a very risky time to buy gold: you never know when and how much, the price will decrease. Just see how much it decreased on 19th May.
Usman
Sir my name is Usman And i live in Pakistan.My business is jewelery.
Sir i want to know that in coming future gold prices will decrease or it will go high.
Sir also help me that in long term eg in 2014 or 2015 gold will go up or it will crash like oil?
Gold price is unpredictable : )
You can never know when or if the price will go up or down.
In around 1980, gold price increased to ~$800 from ~$400. Some people may then had thought that it will continue to increase in this way and they invested their money in gold.
But after few months, the price started to decrease and in 1981 82 …. gold price again dropped to where it was before.
Nowadays, many experts believe that this time, gold price may not drop like the past. They say that the demand for gold [safe heaven] is increasing everyday. Gold production will slow down in future as mines are running out of this metal : )
Some say that by the end of this year, gold would cross the $1300/ounce level.
On the other hand, some experts think that it is risky situation where we may see huge drops anytime. Like the past, gold price may come down at anytime.
Its quite a confusing situation : )