Gold dropped from historic highs over the past week and now sits at US$954-955 an ounce.
Gold bottomed out at US$905 last Friday before recovering to its present level. The drop was mainly due to large profit taking when gold hit its record high.
Heading toward the end of a financial quarter, many large financial institutions sold down parts of their holdings to take advantage of the high price. The rebound on Wall Street and the US dollar’s rally also contributed to the drop.
Many analysts also expressed concerns that a slowdown in the US would lead to reduced consumption of raw materials such as gold.
Gold has now recovered to healthier levels as concerns remain around the uncertainty of the global credit crunch.
In other news – if all the stresses of the uncertain financial times are getting to you, perhaps you could consider going in for a 24 carat gold facial – only US$300 a pop.
