Gold price dips as European and Asian equities recover
Don't buy gold. The price of the precious metal fell this morning, as investors flocked back to equities following a rally in Asia.
Gold futures fell 2.4 per cent to $1,209 this morning. Last week it peaked at $1,255, – having risen above $1,200 for the first time since June 2015 as global equities plummeted.
Meanwhile, this morning FTSE 100-listed gold miner Randgold Resources was down 3.2 per cent, at 5,955p, while Fresnillo was down 4.1 per cent, at 859.7p.
But analysts suggested the selloff may be a blip.
"After the sharp gains seen last week, [today's fall is] merely a rounding area in light of recent moves," suggested Simon Smith, chief economist at FxPro.
Last week Alistair Hewitt, head of market intelligence at the World Gold Council, wrote for Morning Wire that although demand for gold had been weak at the beginning of 2015, it rose sharply in the final six months of the year.
"Jewellery demand in the final six months of the year globally was at its highest level in the past 11 years," he wrote.
"And bar and coin demand among retail investors was good, too: European bar and coin demand rose 12 per cent and in 2015 was the largest market for bars and coins in the world at 219 tonnes and Chinese bar and coin demand was up 21 per cent."
