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Friday, September 23, 2011

why gold silver prices down september 23 2011

why gold silver prices down september 23 2011 : Gold and silver prices plunged further today to complete a miserable week for the commodity sector. The metals took a battering on fears that the world is sliding into recession and the dollar strengthening against other major currencies.

Gold's price per ounce slipped to $1,675.18 having stood at $1,744.20 at one point in the day. Silver investors faced further pain, with prices crashing 11 per cent to $3,278.50 and copper traded at $335.50.

Normally a safe haven in times of trouble, the price of gold hit an all-time high of $1,920 earlier this month, but it now looks headed for a third straight week of falls.

Financial markets have been thrown into turmoil across the board this week following grim warnings and emergency stimulus action from the Federal Reserve, downgrades to economic growth forecasts by the International Monetary Fund, and evidence of a manufacturing slowdown in China.

Miners are thronged the top of the fallers' board on the FTSE 100 for the second day running on worries that demand for commodities will dry up.

Gains in the U.S. greenback have made gold and oil - and other dollar-denominated commodities - less attractive to foreign buyers.recession fears have prompted investors to flee emerging market currencies and other asset classes to go into the dollar, which has hit a six-month high.

'The natural effect of that is not only to hamstring US manufacturing with an additional burden of a strong currency (over and above weak demand) but it also puts downward pressure on commodities which are traded in dollar-terms - gold and indeed oil amongst them,

'What appears to have turned a gold sell-off into a rout is stops being triggered on COMEX with futures traders liquidating long positions. The possibility of "official" selling by central banks cannot be excluded either.'

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