The gold prices lost 6.4% to $1552 an ounce in a trading session on September, 26. According to The Financial Times, the gold dropped by 13.8% in the last four sessions and by 19% in the last three weeks after having reached a historical maximum of $1920 an ounce. According to Bloomberg, a fall in the gold prices seen in the last two sessions is a record one since 1983.
The silver prices lost even more. On 26 September the silver sank 13% to $26.95 an ounce and dived 32% in the last four sessions. The metal is widely used as a means of investment and in industry as well. Therefore, its price depends both on market fluctuations and on eventual slowdowns in global industrial sector.
Normally, investors buy precious metals amid instability in global economy in attempts to rescue capitals from possible devaluation. This factor has pushed up the gold prices for more than 10 years in a row refreshing its historical maximums every time.
According to The Financial Times, investors sell the gold because of fears of a liquidity deficit which market may see amid concerns about recurrence of the crisis of 2008. Bloomberg supposes that a fall in the gold prices may be driven by traders who suffered losses in other markets and try to cover them by selling the gold. Stock indexes shrank considerably last week, and MSCI All Country World entered a bearish phase.