The price of gold has continued to fall and is now down to its lowest level since July.
A strengthening US dollar has weighed heavily on the value of the precious metal in recent months and fears the US Federal Reserve could soon taper its quantitative easing scheme have also had an impact on the commodity.
Bullion dropped yesterday (December 3rd) by as much as 2.7 per cent to $1,218 (£743.9) a troy ounce, reports the Financial Times.
Walter de Wet, an analyst at Standard Bank, predicted further liquidation of gold held in exchange traded funds (ETFs) will occur this week if jobs data from the US is positive.
Analysts at Barclays noted in a report: "Gold ETF holdings have failed to stabilise and preliminary data for November show outflows of 47 tonnes, a similar pace to October. Total metal held in trust has hit a fresh low since May 2010."
The falling value of gold has had a major impact on the share price of Albemarle & Gold recently, with the UK pawnbroker's directors confirming they are seeking a new buyer for the firm.
Find out about commodities trading and learn CFD strategies at City Index
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.