Why have gold prices dropped so much in the past 6 weeks. will they continue to fall?

Question

Why have gold prices dropped so much in the past 6 weeks. will they continue to fall?

Answer 1

Because the dollar went up.  All commodities are traded in dollars.  And when the dollar goes up they go down.

Answer 2

Because Gold had very big gains in the past.  So can have a little corrections that in the sort term, looks important.  

The basic trend will remain upward in the next 5 years, because of the global depression (basically I mean in US, Europe and Japan).

Gold is a safe harbor for difficult times.  

Answer 3

hi friend,

           Crude, International economy, Stock market and Gold all are interlinked to each other. Whenever Crude soars, stock market loses it's sheen and many investors turn large part of their investment into gold. this particular reason leads to rise of gold prices as it's demand increases in market.

             After U.S economy slowdown in January ( U.S Subprime crisis) And rise in crude prices, stock market fell which rose gold prices.and till last two month it was increasing. but since last two weeks crude prices are cooling off which is turning positive sign in stock market and fall in gold prices.

             Good market study can teach u to guess the ride of gold prices.

Answer 4

I believe that the price of gold fell relative to the US dollar due to irrational exuberance about the performance of the US dollar vs. the Euro.  The US government is still spending like a drunken sailor, and the printing presses are driving the US dollar toward parity with the Zimbabwe dollar.   I do not think gold prices will continue to fall, I believe they will appreciate substantially due to inflation of the US dollar.  I believe it is a great time to buy.

Grandpa

Answer 5

I hope not!!