Gold falls to six year low

Gold has finally reacted to the US rate rise, slipping over the last two days.

The metal fell nearly US$30, or 2.5 per cent, reversing the slight upwards movement made after the announcement of the US Federal rate rises.

It now sits at its lowest point since October 2009.

This is an enormous movement against only a .25 per cent rate hike figure; however it is the first US rate rise since December 2008.

Gold fell to US$1050.10 an ounce on the comex, while it fell to a more respectable US$1067.75 in Singapore.

 

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