According to the latest data, Gold futures have bounced back from its fall to its lowest level in three years yesterday but has recorded its largest quarterly fall ever.
At the Comex division of the New York Mercantile Exchange, the gold for August delivery increased $12.10 or 1 per cent to settle at $1,223.70 a troy ounce. Gold futures had fallen to as low as $1,179.40 an ounce, which is its lowest intraday price since August 2010. Gold futures rose slightly as investors expecting lower prices closed those bets on Friday.
Gold prices have fallen 23 per cent during the three months June, 2013, which is largest fall since the US suspended the convertibility of dollars to gold in 1971. Investors have started selling gold due to concerns that Federal Reserve will begin its roll back of $85 billion stimulus package that had earlier supported gold prices.
Fed Chairman Ben Bernanke Federal Reserve chairman Ben Bernanke indicated that the US will start pulling back stimulus packages for the world's largest economy. Thus the investors are now reviewing their need to hold gold investments.
Source: Top News