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Showing posts from April, 2013
Drop in Gold Price: A Plan for Another Round of Quantitative Easing? Sumanasiri Liyanage
From The Hindu

After April 2012 drop in gold prices, global gold market has registered a sharp drop in prices once again in April 2013, just before the Sinhala Tamil New Year. The spotgoldprice hit an intraday low of $1,493.35 (£972.40) per troy ounce, putting it 22.3 per cent below September 2011's intraday peak of $1,921.41. Thus gold posted its biggest weekly decline since December, 2011. A bear market is loosely defined as a 20pc fall from its high. Although prices recovered to $1,505.20, the precious metal is still trading 21.7pc below its peak. "The scale of the decline has been absolutely breathtaking. We tried to rally and that just didn't get anywhere ... there hasn't been any downside support, it's like a knife through butter," Societe Generale analyst Robin Bhar said. Parallel to this developments, gold prices became bearish in Mumbai billion exchange prices of go…