Gold Sinks Below $1,600 as Analysts Lose Confidence

The price of gold has dropped more than $200 since November—and some analysts now think the metal’s price may be headed on a downward slope.

The spot price of the yellow metal on Dec. 14 sank below $1,600 an ounce, virtually erasing the gains it made following a massive 15 percent decline in September.

At press time, gold was trading at $1,575 an ounce—a far cry from the $1,920 it hit in September and the $1,795 it hit in November.

Analysts blamed the fall on the strengthening of the dollar.

Commentators seemed increasingly pessimistic about gold’s direction in the future, with most expressing concern that it has fallen below its 200-day moving average for the first time in two years.