The Gold prices dropped sharply

The Gold prices dropped sharply 

 

Nov 03 2014

 

The Gold prices continued its decline to trade near 4-year low, after the Bank of Japan decided to expand its monetary stimulus program and the positive U.S economic data like the better than expected consumer sentiment data from the US reduced the yellow metal demand.

In fact. The BoJ has taken this action on fears of falling oil prices and its negative impacts on consumer prices. So the yellow has ended the trading of Friday session on bearish candle and the prices dropped sharply toward the lowest level since July 2010.

 On the other hand, the  rising US dollar index, which measure  the greenback's performance against a basket of major currencies, remains supported by the recent decisions of FOMC by ending its  this bond-buying program, which was supporting the demand for gold as a safe haven asset. And the decision of ending the program has decreased the demand of the yellow metal as an alternative investment.

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