Gold prices fall again near 2013 record lows

Gold prices have taken another beating as they fell close to the lowest levels.

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The precious metal is currently valued at $1,245 per ounce, near the lowest it traded for $1,211 an ounce in June. Its current value is down by 25 percent from prices earlier this year.

“Gold has been under pressure since the European Central Bank announced a surprise interest rate cut earlier this month,” according to Carlos Sanchez, an analyst at CPM Group.

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The move immediately created an impact of increasing the value of the dollar against the euro, making the dollar-denominated gold less attractive to buyers. The price of gold further fell after the Federal Reserve released the minutes of its October meeting.

In the report, speculations were rife that the central bank could taper off on its bond-buying program, known as quantitative easing, as early as December of this year. This means that support for gold prices could be held back or cut altogether.

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Sanchez believes, though, that while prices are near its record lows, the smart trader sees the opportunity of a mid- to long-term investment. He also believes that “the economy is not yet strong enough for the Fed to begin tapering next month.”

Gold prices have been taking a massive hit for some time as traders reinvested their money in the stock markets in exchange for higher returns.

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