Archive for August, 2015

Commodites Hit as China Flounders

Monday, August 24th, 2015

A Golden Exodus?

The focus of online commodity trading news has centred around the events in China over the past few days. With the Shanghai Composite Index falling no less than 8.5% before slightly rebounding, investors in precious metals such as gold have been selling off some of their holdings in order to recuperate losses. As this metal has been performing considerably well over the past month, it only makes sense that such a liquidation occurred. However, some wonder as to whether or not online commodity traders will seek to buy back their holdings with the continued volatility of the markets. While China has announced that it is reducing its interest rates by 0.25%, some experts wonder if this will be sufficient to bolster their weakening economy. Thus, we may very well see a resurgence in gold prices as investors once again look for a traditional safe haven against the open markets. (more…)