The reputation of gold as a safe haven in times of economic crisis has been hit again, as the value of the commodity has fallen.
Spot gold fell 0.34 per cent to $1,389.49 an ounce today (May 28th), cancelling out the gains of 0.5 per cent that were recorded by the precious metal yesterday.
According to a report by Reuters, physical buying remains strong in Asia, but the health of the commodity has been damaged badly over the course of the year so far.
It was noted by the news provider that the metal gained two per cent last week, which meant it enjoyed its strongest week in a month.
US gold managed to buck the trend of the falling value of the precious metal and it rose 0.16 per cent to $1,388.80.
Brian Lan, managing director of GoldSilver Central Pte Ltd in Singapore, recently explained stocks and shares are being seen as a more appealing option than gold at the present time.
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.