13th November 2014
The gold price appears to be enjoying a much-needed period of calm at present, after falling to a four-and-a-half year low during last week's trading.
Hitting $1,132 an ounce sparked some investors into life as they figured it would be a good time to get the precious metal at a bargain rate. The timing also coincides with the dollar index moving away slightly from a four-year high – generally speaking, gold trading goes up when the dollar index goes down and vice versa.
However, the index is just a symptom of the deeper lying reason for the precious metal's slump. The real reason it's struggling is because investors expect the US Fed to put interest rates up sooner rather than later, which will make other assets more appealing than gold.
On top of that, there are no new developments in the Middle East or Eastern Europe which may prompt the need for a safe haven. As a result, at 0800 GMT, the gold price sat at $1,156 an ounce.
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