Price of Gold Drops to Lowest Level in More Than a Year

Just before trading closed on Friday, April 12, 2013, the price of gold dropped $64 to $1,501 an ounce, which is the lowest it has been in more than a year. Other metals, including silver and copper, also experienced price drops, as Treasury yields sank to their lows for the year as well.

What was the cause of the price fluctuations? According to The Associated Press, one catalyst could be the government-issued report that U.S. wholesale prices declined in March to the lowest they had been in 10 months. When inflation decreases, traders tend to sell metals. Additionally, gold prices may have also been affected by the reports that Cyprus may sell some of its gold reserves. It’s speculated that this may influence other European countries, such as Italy and Spain, to follow suite.

David Joy, Chief Market Strategist of Ameriprise Financial, said that the drop in metal prices and Treasury yields both imply that traders in those markets anticipate a slowdown, reported The Associated Press.

Manhattan Gold & Silver Update

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