from Gold Silver Worlds:
On Monday 20th July the gold price fell sharply, dropping 4.3% from its Friday closing price. This note explains what happened and counters some misconceptions.
The majority of commentators explain gold’s recent price fall in the context of four themes:
The continued recovery in the US economy, the associated strengthening dollar, and an expected rise in interest rates. This, they believe, represents major headwinds for gold.
A slowdown in China’s gold demand.
The recent broad commodity sell-off, which is itself a result of US dollar strength and concerns over China’s economic growth.
And in the background, political tensions have eased, as illustrated by the tentative resolution of a Greek bailout.
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