After the most recent trading session, $1,200 gold doesn’t seem too far off anymore.
On June 20, gold’s price per ounce sank below the $1,300 benchmark, at one point hitting $1,287, its lowest level since September 2010. At press time, it was trading at $1,293, down $74 from its opening price.
Analysts attributed the current sharp drop, which came on the heels of two days of dramatic declines in April, to a reaction to the Federal Reserve Board’s comments Wednesday on ending the era of “easy money” as well as to a general loss of faith in gold’s investment potential.
Silver also had a bad day. At press time, it was trading at $19.81 an ounce, down $1.86 for the day, and also its lowest level since September 2010.
The number of analysts souring on gold has risen since April’s downturn, with some predicting the yellow metal could sink to $1,200 an ounce—or to even $1,100.
So far, gold is down 15 percent for the year, according to goldprice.org.