Tue, 21 Jul, 2015 12:02:08 AM FTimes – STT Report, July 21  File Photo – Lehtikuva. Gold prices, which have been falling down gradually since 2011, have hit their lowest in five years.
The exchange price of gold has, however, been reflected on the price delay of rings and jewellery.
“I thought the fall would be for a month or a couple of months at most,” said Niklas Sundman, the executive director of valuable metal dealers, KA Rasmussen Finland.
Five years ago, the delay could last up to four months when companies bought up to half a year stock at once. When the price of raw material falls, no one should have large stocks.
According to Sundman, the trading at jeweller stores has fallen because of the general economic situation.
Expensive jewelleries, and not the cheaper versions, however, continue to be sold. People who have money, according to Sundman, continue to buy at a steady pace but people with little to spend have even less money to spend on jewellery.
All gold on the world market fell by 4 per cent to less than 1,088 dollars an ounce, the lowest level since March 2010.
Gold has recovered slightly during the day with the London Metal Exchange noting a rise to over 1,100 dollars. Additionally, there was a 5 per cent fall in platinum prices, the lowest level since 2009.
The price fell to 942 dollars an ounce. The reason for the sudden drop of 4 per cent was that China sold a surprisingly large amount of gold reserves on the Shanghai Gold Exchange.
Trading in gold this morning was exceptionally lively. The price of gold has been going downhill since 2011.
China usually buys gold when price falls. The price fall was also affected by the fact that the US Federal Reserve Board chairman Janet Yellen said in the past week that the Fed would be raising interest rates if the US economy continues to grow, according to expectations.
The dollar strengthened after Yellen made the notice and as a result, investments shifted from gold to dollars.
More News
|
|
Finland Times
| Monday, 29 April, 2024 |
|
Copyright © 2024 All rights reserved
|
||||
