Ask an expert: What's pulling gold down?
MSN Money's Anthony Mirhaydari explains what's next for the precious metal.
In the video below, MSN Money's Anthony Mirhaydari explains why gold has fallen, what's next for the precious metal, and where to find the smart investments given gold's fading luster.
On April 15, gold suffered its biggest one-day decline since the 1980s. That sell-off came on top of a massive decline the previous session. The total losses of 13% left gold at the lowest closing level in more than two years.
While the free-fall has since been arrested, gold was down in seven of the last eight sessions. The precious metal again touched its weakest price since April 16 at $1,338.95 on Monday before rebounding.
But Tuesday morning, with a firmer dollar and the possibility the Federal Reserve might begin to taper off its stimulus measures, gold prices resumed their fall.
Mirhaydari explains the reasons behind gold's weakness. For one, gold has always been regarded as a hedge against inflation as well as anything that could potentially have a negative global impact. But such risks have receded, and with the stock market doing so well, investors are looking for higher returns rather than safe havens.
Mirhaydari further speculates on the reasons behind gold's general slide, bringing up three interesting theories. He concludes with some advice for investors.
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HMMMM...Guess you should always have a little in precious metals in any well diversifed portfolio.
It helped us a lot just a few years ago.
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The solid report comes a month after the retailer closed all of its Canadian operations.
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