InvestmentsAug 5 2015

Gold price crosses “key thresholds”

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Gold price crosses “key thresholds”

The price of gold has dropped below “key thresholds”, according to the gold and silver investment platform, BullionVault.

In July gold dropped to its cheapest levels since early 2010, falling below $1,100 per ounce.

During the month the number of existing investors who chose to sell increased 50 per cent from June to reach the highest level since January.

However, the drop in price also spurred some investors to buy gold for the first time as the number of users on the platform hit 56,000, the highest since October 2013.

The combination put BullionVault’s Gold Investor Index, which measures the balance of buyers over sellers, at 54.5 last month, the strongest reading since September 2013.

Adrian Ash, head of research at BullionVault, said: “Gold last month saw the strongest growth in new UK investors since March. The number of new eurozone investors rose 20 per cent above the recent 12-month average.

“Combined with the US Fed’s repeated delays to raising interest rates, July’s 6 per cent drop in dollar gold prices was met by a 73 per cent rise in the number of new US investors compared with June. New US customers last month accounted for the largest proportion of all new BullionVault users since the start of 2011.”