Course adjustment or beginning of a downward trend? Once again, analysts are by no means in agreement as to which path the gold price will take in the coming months after a long sideways movement has ended. In any case, it is true that something is finally happening again. The direction of some dealers is ultimately surprising. India's new government, for example, had only recently decided to loosen the previously relatively restrictive requirements for the import of the precious metal, which gave hope for a price increase.
What is it about the rumor of a drop in the gold price in UK?
But instead of an increase in Indian gold purchases, reserves were sold on a large scale. And the gold chart also shows worldwide that after a few ups and downs with subsequent sideways movement there is apparently movement in the gold market again. Less experienced traders will not be unsettled by bad news regarding a possible price slide and will not prematurely consider selling their own reserves. A look at past price developments shows that the month of June is traditionally more or less a typical year phase in which the gold price reaches a usual low. That the troy ounce of gold ended up at just under $ 1,250 at the end of the month,
In an emergency, prices can drop rapidly
If you ask experts at which brand they believe there is a clear indication of a real price slump, prices are often quoted around USD 1,200 or slightly less. However, it should not be forgotten that this difference of around $ 50.00 per troy ounce can be quickly compensated for in a bad moment - in this case in the negative sense for potential sellers. There is no way around careful market observation if retailers do not want to miss the opportunity to buy, but above all the right moment to sell. It has been shown time and time again that prices can drop rapidly below the $ 1,000 mark.
Sales in India and China are dropping gold prices
Incidentally, India was not the only country that recently supported the gold price in which sales rose significantly. The situation in China is currently similar. Net gold imports via the Hong Kong market in the Middle Kingdom fell by almost a fifth last month. Calculated for the first quarter of the year, the drop in demand is around 18 percent, according to information from the renowned Hong Kong Census and Statistics Department. All in all, one can say: keep an eye on the gold price and make the right decisions if there should actually be a long-term correction of the gold price.