Gold Rates Decline In The Last Few Days - Aug 18 , 2008

Gold rates have seen a precipitous decline in the last few days and indeed in the last four weeks, taking most gold bulls by surprise. Speculators on strength of whose support the yellow metal reach seemingly unsustainable heights have deserted it in search of better prospects elsewhere. The gravity of the situation can be estimated from the price movement. In the cash market, the yellow metal traded on July 17 at $957 an ounce. By August 7, the market had already gradually fell to $873/oz; and on August 14, the spot rate was $807/oz. Investors and investment funds, who had betted on an increase in gold prices, had to quit the market in a hurry to limit their losses.