World Gold prices plunge to its lowest since March 2010
The gold price plunged to its lowest in more than five years to 4 per cent, as talk of a US interest rate rise this year has led investors in China, India, to sell the precious metal.
The price fell 4% to as low as £696.35 ( $1,088.05) an ounce as soon as Shanghai Gold Exchange opened trading, with volumes soaring to a record level – the lowest key threshold level of £704 ($1,100), since 26th March 2010.
Investors turned to the US dollar, which rose on the likelihood of the Federal Reserve Chair Janet Yellen told Congress that the Fed is on course to raising interest rates because of a stronger US economy.
Investors generally buy gold during times of uncertainty.
The price of platinum also fell 5% to its weakest since the global financial crisis.
In India, Gold prices plunged to the lowest and touched £192.80 (Rs 19,280) for a sovereign, a fall of £2.40 (Rs 240). A gram of gold is at £242.99 ( Rs 2420). Gold recorded a price of £195.20 (Rs 19,520) the other day. Meanwhile promise of a third Greek bail out instilled more confidence for investors in the Euros and European market. Gold used to be reliable economic indicator in the past.