Because of the recent trends that are happening in the world, the price of gold recently went down to a level that wasn’t expected. The current selling price of gold after the news in Japan and in the Middle East hit the headlines reached $1395.70 from its previous price of $1400. There are speculations that the prices may even sink to $1,150 in the next few trades.
What is unusual is that normally when money sentiments are not looking good, people turn to gold as safe haven. However, what happened was people are accumulating dollars rather than gold. There are investors who say that people are looking for ways to increase their liquidity and are cashing in on their gold to gain new funds. The news about the disorder in the Middle East is also putting pressure on gold prices which lead to its decline.
So far, gold isn’t the only one affected. Even the price of other precious metals and oil are going down after the news on world events are hitting headlines. Japan is the third largest country in the world that consumes a lot of oil and when their buying ability is affected, it will create drastic movements in every market. Any worst development that will happen further will also pull down gold prices and it’s most likely that the price initially forecast at $1,150 won’t be very far.