Gold price reached a new record high Monday
Gold subsequently dropped quotation dollars per ounce at 1260, following the announcement that China will allow yuan appreciation against the dollar to allow greater flexibility of exchange rates. China’s decision resulted in increased depreciation and interest for risky investments.
Spot market gold was quoted with $ 1258.15 per ounce, against $ 1,255.35 in closing session Friday. Futures contracts with delivery in August climbed $ 1.3 to $ 1259.6 per ounce.
Gold price rose by over 15% since the beginning because of the debt raised investors’ worries European countries and prospects of further instability in financial markets.11