By Max Clarke
The price of gold
continues to ease off from its high reached last month, as heavy losses in key financial markets are prompting investors to sell their gold.
The precious metal recently topped $1,920 per troy ounce, though this price has since dropped to today’s $1,831 value as investors across the planet continue to sell in the face of worsening economic problems in the Eurozone. Over the past 24 hours alone, its price has lost a further 1.29%.
Gold prices have now been on a sharply upward trajectory since September 11th 2001, as investors have increasingly sought to diversify their assets in the face of global uncertainty. In 2011 alone the price has risen by nearly 60% as prolonged crises in the eurozone along with debt and joblessness dampening global confidence.
"People always assume that gold does well in times of crisis, but that is not necessarily the case," said Standard Chartered analyst Dan Smith to the US edition of Reuters.
"Gold is held as part of a wider portfolio of assets, so when you see blanket selling of equities, then gold will come down at the same time. Having said that, of course, it has tended to do well on worries about Europe and currency strength, but the wider picture needs to be taken into account, so that is why gold is struggling at these higher levels."
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