should feel even more speculators on the rise of gold cheese after the precious metal fell through just two days to its lowest level in two years, which raises questions about the percentage that should be posed in gold purses.
After 12 years of successive annual gains, a Reuters poll showed in January to the views of 37 analysts that at the time expecting the arrival of a gold rally to the extent of the precious metal could hit record highs on average during the year and next.
Even though the banks had begun to retreat from gold forecast to exceed its record of $ 1920.30 per ounce and recorded in 2011 were the majority still prefer the possession of gold as an alternative currency and a hedge against inflation.
Then came the issue of Cyprus.
The assessment showed Cyprus financing needs prepared by the European Commission on the tenth of April troubled that the island will need to sell gold reserves to raise about 400 million euros to help finance part of the rescue package.
On the same day showed the minutes of the meeting of the Federal Reserve (central bank), the U.S. on 19 and 20 March that officials tend to end bond-buying program catalytic end of the year, which in turn will ease inflationary pressures.
Gold fell 1.6 percent, but appeared to be settled in the next day before falling by 5.2 percent and 8.4 percent on Friday and Monday, respectively, in a move that over two days was most striking in 30 years.
The price of around $ 1380 per ounce by 1650 GMT on Tuesday after he began Friday’s trading above $ 1560 an ounce.
Said Pedro de Noronha, co-director at Nustr Capital in London, “We were lucky to get rid of all of our long-fully at between $ 1560 and 1570 (an ounce) … we continue to watch but do not do anything at the moment.”
Investors rushed in ETFs for the disposal of investments.
Said Sean Corrigan, chief investment strategist at Diabason Commodities Management in Switzerland “I do not think that anyone thought that we will see this massive move and this quantum of sale. Has inflicted serious damage to investor confidence.”
They said Corrigan that the image of gold as a safe haven has been declining since some time because the factors that were usually drive the market to rise failed to do so and the Cyprus problem as an example.
The major investment banks lowered its forecast for gold prices in recent times. On April tenth, Goldman Sachs cut its forecast for the price of gold for the second time in six weeks and refer to the expectations of accelerating economic growth in the United States and weak prices in the last period.
Following the sell-be gold prices have fallen about 20 percent so far this year and about 28 percent since the boarding record in 2011.
And approved the Bank of America Merrill Lynch that the main drivers of the decline were fears of further sales from central banks in the euro zone after the proposal for Cyprus also exacerbate the decline due to selling by funds.
But he added, “is difficult to explain the collapse of the price of gold given to the traditional variables such as the trading price of the dollar or interest rates, which raises fears that the reputation of gold as an alternative to paper currency may have been damaged.”
However, it is still adopting a positive outlook on the future of the precious metal says that the formal sector – represented by central banks – are still keen to purchase if the benefit gold as a store of value easy trading in difficult times proved evident in the Cypriot proposal.
And said Daniel Pripnr, an analyst at Deutsche Bank, “the actions of central banks generally do not indicate that it will sell.
“I doubt that strongly influenced by the role of gold in this extreme volatility over those three days
