After years of attracting strong demand from fearful investors, a crash in gold prices on Monday caught the financial world on the hop.
In London the price was officially “fixed” at $1,395 per troy ounce, down 9.2% from Friday. Eight hours later on the New York market, the price for immediate delivery was down 9.1% from Friday at $1,365 an ounce. Most other commodity prices fell in gold’s wake. By Monday evening Brent oil fell below $100 a barrel for the first time since July 2012.
The sudden collapse of gold left brokers and bloggers scratching their heads for explanations. Whatever the cause, it must be big to have such an impact. And gold’s special place in finance means there will be repercussions.
The Guardian, United Kingdom