Gold drops to two-year low

<p>The price of gold has dropped to a new two-year low.</p>

Gold has continued to fall in value today (April 15th) and has even dropped to a new two-year low for the precious metal.

Its price slipped by five per cent and is now lower than at any point since 2011 and its value is 26 per cent down on September 2011.

Speaking to the Financial Times, Joni Teves, precious metals strategist at UBS in London, described the fall in gold prices as "nasty".

Investors will now be waiting for trust in the value of the precious metal to be rebuilt in the coming weeks and months, it was pointed out.

Tom Kendall, precious metals analyst at Credit Suisse, added that gold is "not a very effective hedge against broad-based risk-off moves in the commodity markets".

Gold's value has been hit by recent economic news, such as the revelation that Cyprus is considering a sell-off of its gold reserves in a bid to ease its financial problems.

Its value dropped to $1,557 (£1,012) last month when it emerged the Cyprus government is thinking about selling ten tonnes – or as much as €400 million – of the precious metal.

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