Unemployment skyrocketing and countries like Australia entering into recession for the first time in years,.

With US equity markets trading near a 12 year low, the latest price action in gold is disappointing and surprising. Gold rallied to $1000 an ounce mid February and has declined over $90 in the last two weeks. € The decline in the price of gold is little bit harder to explain. Gold dropped 9% from $1,000 high € Gold prices have touched level below $900 an ounce on for the first time in 4 weeks as XAU/USD has dropped already 9% of its value since having reached $1006.45 on Feb 20.According to Reese Malpede, technical analyst at Easy Forex, Gold could have depreciated by various reasons, namely the recent USD strength or US savings rate; U.S. € Although the economic environment does not seem the best to assume risks, with U.S. Gold is vie by many investors as the ultimate safe haven shelter.

Savings trate reached a 14-year high in January.Nevertheless Malpede finds it difficult to explain the sharp drop on Gold prices in a time of economic turbulence such as the present one.