The price of gold fell to a new low during the first week of July according to several reports that claim the decrease in value is due to a strong job market and the expectations of higher interest rates in the United States.
August gold fell by $13.60, which is the equivalent of a 1.1 percent decrease in value. Such rate is the lowest since March when prices dropped by 2.6 percent. Silver also experienced its share of decline with initial values falling by as much as 10 percent on Friday (July 7). There was eventually a reversal in the numbers that increased September silver’s value from its original price fall. The commodity still lost 55.8 cents of its worth to bring a 3.5 percent reduction in prices for silver.
The U.S Federal Reserve and European Central Bank
The U.S. Federal Reserve has expressed desires to normalize its policies and pursue gradual interest rate increases. The European Central Bank, on the other hand, is making steps towards closing in on its efforts to stimulate the United Kingdom’s economy after several years of purchasing bonds aggressively. Such shift in agendas on behalf of the U.S. Federal Reserve and European Central Bank has caused global bond yields to rise exponentially. Such increase has taken its toll on gold prices in a negative manner.
Inflation and the Job Market
The job market in the United States has been on the rebound for the past several months with thousands of new employment opportunities added to the market every quarter. Higher interest rates have also been common over the past few months with the results driving inflation down. While job prospects and greater affordability of goods and services are positives for consumers, such activity has wreaked havoc on precious metal values.
Now is the Time to Invest
Reduced prices of gold, silver, and other precious metals makes now an excellent time for investors to purchase scores of the commodities. Titanium tubes, in particular, are hidden treasures since they may be used to craft material used for aerospace projects and domestic products. It is best to purchase titanium that is lightweight yet sturdy since such quality is what aerospace companies use when building machines.
Regardless of the type of commodity chosen, the most important thing that a buyer can do is invest while prices are still low. Waiting for the “right time” may prove to be a missed opportunity for wealth.
from Gold Silver Worlds http://goldsilverworlds.com/gold-silver-experts/gold-prices-fall-thrill-investors/