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Gold Price Falls to Five-Year Low

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20 July , 2015: The gold price falls to five year low as talk of a US interest rate rise this year has led investors to sell the precious metal.

The price fell 4% to as low as $1,088.05 (£697) an ounce in Asian trade – the lowest since March 2010.

Investors turned to the US dollar, which rose on the likelihood of the Federal Reserve raising rates because of a stronger US economy.

Investors generally buy gold during times of uncertainty.

Monday was the first time the metal has traded below the key threshold level of $1,100 since 26 March 2010.

The price of platinum also fell 5% to its weakest since the global financial crisis.

Evan Lucas, a market strategist at trading firm IG, said the recent slump in gold prices could signal a “retracement” to $1,000 an ounce by the end of the year.

“There are no clear signs (or reason) to buy it. It is an inert metal that is a store of value yet inflation is heading nowhere and investment in the US dollar and bonds is clearly more appealing,” he told the BBC.

Source: BBC

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