Gold prices dip on anniversary of crash

The price of gold fell hard on April 15th for the second year in a row this week.

After suffering a 15 per cent drop in its value on the date last week, the value of the precious metal dropped heavily again this year on the anniversary of that crash, which was the worst in three decades.

During Tuesday's morning trading session, the price of gold fell by 2.7 per cent in a scenario that reminded investors of what had happened 12 months earlier.

The fall in the value of the precious metal coincided with the release of a new report on China's gold demand from market-development organisation the World Gold Council. It stated that demand from the private sector in the Asian nation is likely to increase by at least 1,350 tonnes by 2017, a rise of 20 per cent on the current amount.

Albert Cheng from the World Gold Council stated that China has a "cultural affinity" for the precious metal, adding: "When this is combined with an increasingly affluent population and a supportive government, there is significant room for the market to grow even further."

Resistance mark

French investment and London bullion bank Societe Generale stated that the value of gold had hit resistance at around the $1,330 (£790) mark on Monday.

"The market stretched as far as $1,331 before it capitulated and sold off," added technical analyst Karen Jones at Germany's Commerzbank. She said: "Near-term risk remains on the downside."

Data released by the World Gold Council this week showed consumers purchased a record amount of gold over the course of 2014, with China and India remaining the two largest markets for the precious metal.

Mr Cheng said: "Whilst China faces important challenges as it seeks to sustain economic growth and liberalise its financial system, growth in personal incomes and the public's pool of savings should support a medium term increase in the demand for gold, in both jewellery and investment."

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