After crashing below the $1250 an ounce threshold from its positioning around the $1300 mark, gold prices have levelled in today’s trading. Sustained selling last week prompted a long anticipated fall for precious metals, making prices attractive to speculative consumers.
Gold prices closed on $1243.50 on Monday and only gained $0.80 by the time a subdued London Stock market closed for trading on Tuesday. A resolution to the Ukraine crisis and positive manufacturing data from the world’s two largest economies has contributed to the yellow metals downfall.
In the US, the Institute for Supply Management (ISM) reported US manufacturing output was up to 55.4 for May whilst the index in China was up o.4% and a year of slow growth. Asian stocks were boosted by the news and the Dow Jones received similar attention from traders in Wall Street.
Slow week for gold
A slow week for gold is expected ahead of the US non-farm payroll report which is due to be published on Friday. The NFP is considered a yardstick to measure the growth of the US economy. Upbeat data will mean further losses for precious metals in the US.
Interest rates cuts in Europe could also see the yellow metal slide. Head of the European Central Bank is expected to lower interest rates in a bid to encourage business lending in the Eurozone. The decision will be announced this Thursday.
Low inflation rates on wages in mainland Europe has discouraged shoppers from spending and has undermined business lending. The other option for the ECB is to employ quantitative easing methods most other major economies used, but have so far resisted the temptation.
As a result of the imminent economic data, trading for gold is expected to be slow. Consumers are as well to wait until prices suffer further falls on Friday and going into next week, providing Wall Street analysts were not too optimistic in the forecast for May.
Good time to buy gold
The fall in prices signals a great time to buy for consumers to invest in gold. Analysts have predicted the yellow metal could fall towards the $1100 an ounce price point in 2014, meaning this year is a great opportunity for consumers to buy gold to use as a hedge against other investments.
Gold typically performs poorly when currencies do well and with the emergence of the global economy getting stronger each month, precious metal prices will fall to more attractive prices for investors. Precious metals typically offer a great return on investment.
To cease on this great opportunity to top up your pension funds, check out the latest online deals from coininvest.com today. Precious metals is a volatile market and there may not be a better opportunity than now and the coming weeks to get the best prices on gold bullion products.