Gold price falls to six-month low in last week trading

Kuwait (Dec 23)   The gold price plummeted to USD 1,192 per ounce in last week trading, to hit six-month low, the precious metals experts stated Sunday. "The decline is driven by the US Federal Reserve's decision to trim quantitative easing (QE) asset-buying scheme by USD 10 billion as of January, 2014" Sabaek Al-Kuwait Company's Chief Executive Officer Rajab Hamid said in press statements.
"The US decision to cut the QE means the world's biggest economy is recovering of the global financial crisis, thus the traders would return to the stock markets and the gold would lose its safe-haven status," Hamid added.
The US Federal Reserve on Wednesday announced that it would downsize its quantitative easing (QE) scheme by USD 10 billion a month to USD 75 billion, instead of USD 85 billion a month as of from January.
Hamid expected that gold could reach USD 1.150 per ounce it broke the resistance point of the USD 1,180 per ounce.
As for silver, he pointed out that its price has declined but not sharply as that of the gold.
The sliver price dropped to USD 19.40 per ounce, losing only 23 cents per ounce, in last week trading.
Hamid also noted that other precious metals have plummeted in last week trading.
He stated that Palladium lost USD 18 per ounce to reach USD 699 per ounce, while platinum lost USD 25 per ounce to close at USD 1,333 per ounce.
The local gold market was reported to have seen a boom throughout last week, with the yellow metal selling for less than KD 11,00 per kilo. Gold articles were more popular than bullion and items in 18 and in 21 carat gold were particularly popular.