Last week the American dollar played strong against the gold price and hit it down to a 5 year low of 1315.85 USD/oz., but this week the American dollar became a weak player and the gold price is starting to rise. Gold started the week off as a weak competitor at 1315.48 USD/oz., but hit the high 1300’s by Wednesday at 1339.80 USD/oz. This was caused by the Japanese Yen hitting it’s largest one-day gain on Monday, since the British decided to leave the European Union. This also affected the Euro causing it to rise 15%, but many believe this is short lived. The gold price today is 1354.15 USD/oz.
What Does This Mean For Us?
These are clear signs of economic turmoil, which makes many question their security in dollars. Gold and silver are becoming strong competitors against the dollar which is causing many to run to physical commodities as a safety blanket.
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