The Gold price dropped overnight down to around USD$880. This drop comes off the back of the US Federal Reserve holding interest rates at 2% and the US Dollar sitting at six week highs against the Euro.
The other factor in this drop was the price of oil price sinking to US$118 a barrel (lowest since early May) mainly due to reduced consumer demand, reduced threat of destructive weather in the Gulf of Mexico and renewed belief in the oil reserves of the Middle East.
Locally we've seen more rumblings in the finance sector. Finance companies are once again in the news because the downturn in property markets has resulted in withholding or restricting payments to many investors. At the New Zealand Mint we’ve seen increasing numbers of people put their money in gold to protect against turbulence in financial markets.
