18th August 2014
The gold price fell through the $1,300 trapdoor again on Friday afternoon as the prospect of stimulus for the eurozone tickled the fancies of equity investors.
Having been happily bumping either side of $1,310 for the past week or so, gold trading experts took decisive action during the final session of last week, as they decided that the ECB would have to act to reignite the eurozone's recovery, which has very much stalled at present.
The prospect of further easing measures in the single currency area led investors to the conclusion that it was time to invest in companies that could benefit, rather than gold, which is lower risk and lower yielding.
Its safe haven qualities were also negated on Friday after Russian president Vladimir Putin sought to cool tensions in Ukraine with some conciliatory remarks. By 0700 GMT today, the gold price had recovered a little to bang on $1,300 an ounce.
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