Last week we saw the gold price take a drastic fall as it fell from 1311.30 to 1253.88 USD/oz within three days. Since then, gold hasn’t been able to reach the 1300’s as it only reached a high of 1257.11 USD/oz as of yesterday. The gold price today is 1252.25 USD/oz.

The Cause

This is still the effects of the Chinese markets being closed last week. According to Goldseek.com, the People’s Bank of China wants the Yuan lowered which encourages a ‘controlled’ devaluation over time. This is will help the Chinese government have a greater number of Yuan in the international government, which will help it to become a global reserve currency. This will allow the Yuan to eventually challenge the dollar.

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Do you think the price of gold will reach above 1300 USD/oz before the year ends? Let us know in the comment section below!

Sources: usagold.com, news.goldseek.com

Image Source: kingworldnews.com