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Dublin: 9°C Tuesday 18 January 2022

Gold prices hit biggest slump in 30 years

It’s believed that the market is spooked by weak growth in China and the possibility that Cyprus is to sell off some of its gold reserves.

Image: Gold bar via Shutterstock

THE PRICE OF gold has had its biggest fall in over 30 years by dropping 13 per cent between Friday’s open and Monday’s close.

The market is believed to have been triggered by weak Chinese growth data showing growth in the world’s number two economy had slowed in the first quarter to 7.7 per cent, below forecasts.

Investors were also spooked by reports that Cyprus was planning to sell around 14 tonnes of gold to help pay for a bailout agreed with the European Union and the International Monetary Fund.

The fall in demand shows that investors could be turning away from the metal, which is traditionally a hedge against inflation.

Other commodities also took a tumble, with the May contract for Brent crude falling below $100 a barrel for the first time since July.

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About the author:

Amy Croffey

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