Gold prices drop drastically to $1,172

The prices of gold have seen an extreme drop last week, reaching USD 1,172 per ounce, which is the lowest price in the past four years, according to a specialized economic report.
SABAYIKS Gold Kuwait company said in a report issues on Sunday that the rising of the US dollar's rate against the main currencies was an immediate factor for the drop of gold prices. Moreover, the report noted that the decision of the US Federal Reserve to halt plans for quantitative easing also affected the prices.
Another element in the drop was the decision of the Bank of Japan to pump extra liquidity into the domestic banking sector to shore up the economy, the company said. The short time gold prices took to go this low was surprising, the report noted, adding that it broke the long-time-held barrier of USD 1,162 per ounce.(