Gold prices continued to decline as the current gold investment is no longer a primadona. Gold investment is now too risky and the equivalent investments such as stocks and other commodities. Commodity price of gold for June contract fell U.S. $ 34.6 (2.1 percent) to a level of 1604.5 per troy ounce in New York commodity exchanges. Gold prices had even dropped down to U.S. $ 1,595.5 per troy ounce. In afternoon Asian electronic market is the price of gold back down U.S. $ 12.1 (0.75 percent) to U.S. $ 1592.4.
The price of gold has risen in recent years along with the strength of the euro against the U.S. dollar. Gold is considered a safe haven from inflation or deflation makes the price had soared to the top level of U.S. $ 1,900 per troy ounce. When the new European crisis began, gold becomes the target of investors to avoid risk, so the price kept going in the last 11 years. Now the price of gold was not able to pitch alone and should be a tight fight with other investment markets.
The U.S. dollar tends to strengthen against the euro as investors considered the safest place to invest after the elections in several European countries. Especially after French President Nicolas Sarkozy who was in power was defeated by a challenger from the Socialist Party, Francois Hollande.
The fall in gold prices lead to falling prices of other metals. Silver futures for July contract fell 66 cents (2.2 percent) to U.S. $ 29.46 per troy ounce. Platinum prices also fell U.S. $ 21.8 (1.4 percent) to U.S. $ 1,508.3 per troy ounce. Palladium prices also declined U.S. $ 24.95 (3.9 percent) to U.S. $ 622.85 per troy ounce. and copper prices also shrunk 10 cents (2.5 percent) to U.S. $ 3.68 per pound.
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