The gold price rebounded Wednesday, gaining $24.74 to $1,854.37 per ounce, after plunging $67.90, or 3.6%, to $1,829.63 per ounce yesterday amid widespread liquidation in precious metals. The spot price of gold sank after climbing to a new all-time record high of $1,913.60, but subsequently plummeted as investors and traders booked profits in the yellow metal. In doing so, the spot price of gold posted its largest single-day decline since a 3.7% drop on July 1, 2010.
One factor contributing to the decline in the gold price was the Shanghai Gold Exchange’s decision to hike margins to 12%. Read More »