Precious metals were dropping in value to kick off the final week of September, a month that has seen gold alone lose almost one-fifth of its value since touching all-time highs during the first week of the month, according to published reports.
The value of the dollar, hedge funds liquidating to compensate for losses and a volatility that casts doubt about the appeal of gold are dragging down the values, according to analysts cited by Reuters.
"Europe's 'Lehman moment' is here, interbank lending [is] seizing up, credit spreads rising, investors fleeing all risk in a liquidation phase," states a note by Robert Howe of Hong Kong-based hedge fund Geomatrix, according to MarketWatch.
The record price for gold, $1,923.70 per troy ounce, was set on September 6, when speculation soared as to how soon bullion would surpass the milestone mark of $2,000 per troy ounce. Silver futures' record price, $50.35 per troy ounce, was set in January 1980. This past April saw silver futures approach both the $50 psychological mark and the record price, but then the whitish metal led a commodities market dive and silver futures were valued at roughly $31.
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