AFP, London :
Gold slumped yesterday to the lowest point in nearly five and a half years, weighed down by the strong dollar and reports of massive selling in China, dealers said.
The precious metal tumbled to $1,072.35 in Asian deals, striking the lowest point since February 11, 2010, and breaching the key psychological barrier of $1,100.
“The price slide was triggered by high selling volumes on the gold exchange in Shanghai,” said Commerzbank analysts in a research note to clients.
Dealer Nick Rose, at trading firm TradeNext, agreed that the latest price drop was sparked by Chinese sellers offloading large quantities of the metal. Gold had already slid Friday on the back of the strong dollar, which soared last week after US Federal Reserve chief Janet Yellen reaffirmed expectations of an interest rate hike by year-end.
A stronger greenback makes dollar-denominated commodities more expensive for buyers using weaker currencies. That tends to dent demand and, in turn, pull prices lower.
Gold was also hit by news that China’s official gold reserves rose almost 60 percent over the past six years, according to the first official data on the subject since 2009.
Gold slumped yesterday to the lowest point in nearly five and a half years, weighed down by the strong dollar and reports of massive selling in China, dealers said.
The precious metal tumbled to $1,072.35 in Asian deals, striking the lowest point since February 11, 2010, and breaching the key psychological barrier of $1,100.
“The price slide was triggered by high selling volumes on the gold exchange in Shanghai,” said Commerzbank analysts in a research note to clients.
Dealer Nick Rose, at trading firm TradeNext, agreed that the latest price drop was sparked by Chinese sellers offloading large quantities of the metal. Gold had already slid Friday on the back of the strong dollar, which soared last week after US Federal Reserve chief Janet Yellen reaffirmed expectations of an interest rate hike by year-end.
A stronger greenback makes dollar-denominated commodities more expensive for buyers using weaker currencies. That tends to dent demand and, in turn, pull prices lower.
Gold was also hit by news that China’s official gold reserves rose almost 60 percent over the past six years, according to the first official data on the subject since 2009.
