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THE price of gold fell by US$56 an ounce from trading on Tuesday last to a fresh 27-month low.
The London Daily Fix price fell from US$1,285 an ounce on Tuesday to US$1,229 an ounce Wednesday, but regained some ground yesterday settling at US$1,232 per ounce. The last time gold traded at this level was in June 2010.
The gold price is down more than 18.7% this year and the sharp decline has dragged the metal into official bear territory, defined as a 20% decline from a high.
Gold hit a record US$1,909 an ounce intra-day on 23rd August 2011, but the next day suffered one of few triple digit one-day losses when it plummeted US$105, ending the week down more than 10% from the all-time high.
The downward trend in prices has triggered a great deal of soul searching among local miners as they scramble to find ways of reducing costs to keep their operations afloat.
It is the view of industry insiders that prices below US$1,200 an ounce can have serious negative effects on some operations, especially those with high operating costs. (Clifford Stanley)
The London Daily Fix price fell from US$1,285 an ounce on Tuesday to US$1,229 an ounce Wednesday, but regained some ground yesterday settling at US$1,232 per ounce. The last time gold traded at this level was in June 2010.
The gold price is down more than 18.7% this year and the sharp decline has dragged the metal into official bear territory, defined as a 20% decline from a high.
Gold hit a record US$1,909 an ounce intra-day on 23rd August 2011, but the next day suffered one of few triple digit one-day losses when it plummeted US$105, ending the week down more than 10% from the all-time high.
The downward trend in prices has triggered a great deal of soul searching among local miners as they scramble to find ways of reducing costs to keep their operations afloat.
It is the view of industry insiders that prices below US$1,200 an ounce can have serious negative effects on some operations, especially those with high operating costs. (Clifford Stanley)
