The Summer of Low Gold Prices

Falling gold prices this summer meant precious metal buyers were eager to invest in the yellow metal. However, for every buyer there is a seller—and sellers have reasons for cutting their assets.
red-graph-shows-profit-crisis
August saw a number of articles written describing the various reasons for gold’s fall. In summary though, four reasons stand out for this summer’s gold slump:

  1. The likelihood of an increased federal funds rate
  2. Seemingly low geopolitical risks
  3. The strengthening of the U.S. dollar
  4. Gold trend followers

These factors helped attribute to the low gold prices of the summer season.

Other Favorite Posts You Might Like...

Despite a Rough Year, Gold in 2014 Ended Up on Top... The latter half of 2014 was rough on gold investors, to be sure, but Kitco commentator Frank Holmes offers a little bit of perspective, pointing out that though the yellow metal fell 0.8% in 2014,...
Is gold losing its safe haven appeal? Summary: Gold keeps struggling to top $1400, which has many questioning whether the metal has lost its safe haven appeal, especially amid such uncertainty in the general equity markets. An analyst...
Gold Annual Average Seen Lower by CPM for First Ti... By Bloomberg Gold prices on average may fall this year for the first time since 2001 as investors shift “away from extreme expectations of an imminent collapse of the global financial system,” CPM G...