Gold price fear near three-year lows of $1,312 an ounce

On Thursday , gold price trend move to near 3 years low at USD 1,312 an ounce . Fundamental effect from surge of US dollars directly to all major commodity prices. The dollar has pushed higher as the prospect of new Fed money has diminished in light of Bernanke's statement. The euro was down a further 0.5 per cent at $1.3217 Thursday while the dollar rose 1.3 per cent to 97.90 yen. The benchmark New York oil price was down $2 at $96.48 a barrel, while the gold price slid 4.6 per cent t, or a little over $61 to near three-year lows of $1,312 an ounce.

There is a risk we could see an even bigger sell-off if the $1,300 level is breached significantly, the time line for the Fed exit strategy is very much data dependent and based on a whole host of economic indicators between now and next summer, gold prices have slid sharply as the dollar goes sharply bid across the board.


For five years, the Fed has been pursuing an aggressive monetary policy to shore up the U.S. economy, which was battered by the financial crisis. Now that the U.S. economy has shown signs of improvement.

The dollar surge also effect negatively on stocks market all over the world. Stock market in Asia down, for Tokyo's Nikkei 225 down 1.7 per cent lower at 13,014.58 while Hong Kong's Hang Seng index tumbled 2.9 per cent to 20,382.87.  In Europe, the FTSE 100 index of leading British shares was down 2.2 per cent at 6,209 while Germany's DAX fell 2.3 per cent to 8,007. The CAC-40 in France was 2.2 per cent lower at 3,756

Using gold as safe heaven is at jeopardy right now . Gold price was reduce about 18.2 % from June 2012 to USD 1571 to USD 1285 per ounce today , Friday 21 , June 2013 . At this alarming rate , commercial gold investors were panicking. It will take a few months or a year to recover from this event . In April 2013 , gold trader surprise by sudden hiccup when gold price trend to below USD 1500 and now after 3 months , the price reduce to about USD 1300 per ounce .

Will gold losing it attractiveness for investor safe heaven ? Yes , it about time to be caution about gold . Losing 20% value of a year investment is too risky for safe heaven investment .

Will gold losing it attraction for retail buyer ? No . It will not . Lower gold price is major key for small stockist and trader . It is time to buy gold . One good thing about trading real physical gold is , there were alway buyer or seller in whatever trend the gold spot market go for direction.


In Malaysia, fear of losing for gold value already wide spread in investor forum and social chat board. Small trader , gold stockist and sell agent were busying to explain for what happening right now and support for gold long term investment.

Will gold price prevail itself as safe heaven ? Personally , i do think gold price will recover . What gold market need is time . But , investors will not wait another few years to just recover 20% loss . If aggressive action taken , many more investor will cut the loss and move on to other opportunity.


These event might be worrisome. It could trigger for worst closing price and bring gold price to lower pricing zone .

From other view , technically gold price chart was in constant bull market for years . With double top in yearly chart , it about time for bear market and correction.

Finally , can gold price reach USD 2000 per ounce as per hot investment news in 2012 ? I believe , it could be happening event right now. If gold loss it value USD 200 per ounce over slightly 2 months , it could increase in same manner .

Gold is gold for whatever flat money give it value. In old barter way, 1 gold tael is 1 teal tea leaf or a bucket of grain or 10 long yard of cotton.