Price of Gold Slid 1 Percent Today

The price of gold dropped one percent today on news of oil declines of 3 percent. Oil prices have slumped for two days in a row. Goldman Sachs is advising its customers to sell investments in oil, platinum, copper, and cotton. Goldman argues that record levels of speculative trading of crude has push prices in these commodities too high. The world’s biggest commodity trader recommends selling for the near future. Three years ago Goldman shock some investors up by claiming oil would see a “super-spike” forcing prices to $200 per barrel by 2010.

On Tuesday Paris-based International Energy Agency raised alarm by stating “there are real risks that a sustained $100-dollars-a- barrel-plus price environment will prove incompatible with the currently expected pace of economic recovery”. They also warned that recent high oil prices have hurt global demand for energy. In addition the International Monetary Fund warned Monday that high oil prices were a key risk factor to global economic recovery.

In today’s trading Brent crude fell 2.6% to $120.73 and finally settled at $120.94 in the afternoon. Gold fell by 1%, platinum fell 1%, Copper fell 2%, sugar fell 2%, and wheat fell nearly 3%.

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