Gold Prices Today: Modest Recovery After Massive Drop-Off
Gold prices today: Gold prices have recovered on Tuesday after a historic drop a day earlier amid a massive sell-off of the precious metal.
Since its 2011 high of nearly $1,900 an ounce, gold prices have fallen nearly a third in value, according to USA Today.
On Tuesday, gold gained nearly $35 an ounce after it dropped 9.35 percent, or around $140 per ounce, closing at $1,361 per ounce a day earlier. The drop was the worst single-day drop in around three decades.
Chris Blasi of Neptune Global Holdings said that investors have been selling off gold more aggressively in recent days.
“Where is the bottom? I don’t know. The selloff could go on another day or two,” Blasi told USA Today.
Gold prices hit their record highs nearly two years ago after investors attempted to insulate themselves against economic turmoil and uncertainty.
“Remember, the final days of a correction are the steepest and scariest. It appears that we are in this stage for most materials,” Scott Colyer, the head of investments at Advisors Asset Management, told CNN Money.
“Our view is that global monetary easing plus [a] likely return to growth in the developing and emerging markets should conclude this move in basic materials to be just a correction,” he added.
MarketWatch, however, pointed out that retail jewelry prices aren’t affected by the market as much.
“The price doesn’t necessarily move up and down as quickly as the gold price,” Jessica Fung, an analyst with BMO Capital Markets, told the website. Elaborating further, David Bonaparte, with Jewelers of America, said that the “gold has been invested in already and the jewelry has been made.”