Go Finance Reporting SINGAPORE - Despite the forecast to be at an average price of USD1.450 per ounce so far this year, the price of gold is now increasingly sagging.
Gold which is a safe-haven commodities experienced a reduction in value lately. Commodity prices are falling along with other industrial commodities, namely crude oil fell by 1.5 percent and copper fell to its lowest point since late December.
As disclosed Barclays Capital in its analysis that reported by Reuters on Wednesday (01/26/2011), discharge of gold investors due to the economy begins to improve is the reason gold prices are weakening.
Investor sentiment towards gold has worsened in the last few sessions. This is reflected in the step of investors who get out of exchange traded funds (ETF), the largest recorded gold in one day.
On Wednesday (01/26/2011), price of gold in the spot market fell 0.2 percent to USD1.332, 04 per ounce, after earlier reaching the lowest point in three months at USD1.322, 70. While in the futures market, gold prices for February delivery fell U.S. $ 12, 2 to USD1.332, 30.
The spot price on a path to a decline of 6 percent in January, which will become the largest monthly fall since a decrease of 7 percent in December 2009. The sale is largely a consequence of the current run of positive economic data.
Currently, strong consumer demand, especially from Asia to drive gold prices strengthen. However, trade data in the Commodity Futures Trading Commission (CFTC) showed interest in investment, measured by the position of the bullish speculative net long gold futures in the U.S., fell to its lowest level since July of 2009. (GoFinance)
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