After falling more than five percent on Friday, the gold spot price continued to crumble on Monday, with Gold Price reporting that were prices down $108.80, or 7.34 percent, at $1365 by noon EST on Monday.
New York, NY (PRWEB) April 16, 2013
Gold’s fall from glory continued on Monday as the yellow metal sank to sub-$1400 levels for the first time in over two years as news of disappointing economic data from China and rumors of a Cyrpus gold sell-off started to spread. Gold at one point fell more than $30 in just a few minutes as investors frantically scrambled to reduce their exposure to commodities. After falling more than 5 percent on Friday, the gold spot price continued to crumble on Monday, with Gold Price reporting that were prices down $108.80, or 7.34 percent, at $1365 by noon EST on Monday.
According to Kitco News, Chinese economists had earlier predicted that the Chinese economy would grow by 8 percent in the first quarter of 2013, but the actual growth rate of 7.7 percent has apparently frustrated investors who had hoped the world’s number two economy would rebound after 2012 saw China post its weakest growth numbers in the last 13 years. Additionally, news of Cyprus’ government possibly having to sell approximately 75 percent of its gold reserves shocked the supply side of the gold market and helped to create the current “money run" on gold. A “money run" is a common term for a momentum-driven sell-off of assets that snowballs from one investor to another, even if there are little or no true technical or economic reasons for the sell-off to take place.
Since 1992, Gold Price (GoldPrice.net) has been a leading precious metals advisor with headquarters in New York, California, Texas, Utah, New Mexico and Puerto Rico. A direct gold and silver dealer as well, Gold Price specializes in purchasing, selling and trading physical gold and silver such as modern bullion bars and coins and certified rare coins. Investors can visit http://www.goldprice.net or call 1-800-767-1423 to receive a free award-winning gold starter’s kit.