The Cheap Gold

Gold prices posted the biggest drop in four weeks. At 13:57 pm, Thursday (28/06/2012) New York time on Friday (GMT), the price of gold contract for August delivery fell 1.8 percent to 1550.40 dollars per troy ounce on the Comex in New York. This is the biggest drop since June 21 last. Previously, the gold price had dropped to U.S. $ 1547.60 per troy ounce, which is the lowest level since June 1 last. Depressed gold prices amid a slowing U.S. economy. In addition, the movement is also strong dollar on speculation that European leaders will meet with difficulties in issuing a joint policy to address the debt crisis. "The U.S. economy has not shown signs of recovery. That caused investors to hunt for dollars. Moreover, it is unlikely the European leaders will find a solution," said Phil Streible, senior commodity broker O'Breien RJ & Associates in Chicago. Meanwhile, Scott Gardner, chief investment officer Verdmont Capital SA in Panama City argues, the current gold position is at a critical crossroads. "Fear of deflation began to return to the surface, and gold hit by a sell-off along with seasonal commodities. While in Singapore, Friday (29/06/2012), the price of gold contract for delivery in August recorded a rise of 0.2 percent to 1552.90 dollars per troy once. Meanwhile, gold prices in the spot market is not much to record changes in the position of 1552.50 U.S. dollars per troy ounce.