Gold price down 10% in 1 month. What happens next?
London (Nov 17) Gold is getting shellacked. Is it due for a snapback? The price of gold futures is down almost 10 percent over the last month as strength in the U.S. dollar caused investors to flee the metal. Prices dropped to a new low for the year Tuesday.
Surprisingly, the drop has taken place despite the terror attacks in Paris, a situation that in the past would cause investors to crowd into gold as a safe haven. The metal gave up most of its earlier gains Monday after the attacks and that loss of the "safety bid" likely caused more investor to pile on the sell side.
So has the decline gone too far too fast?
Spot silver edged down 4 cents to $1`4.22, while platinum plunged $13 to $855 but palladium edged upward $2 to $546.