Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

4/16/2013 (3 years ago)

Catholic Online (www.catholic.org)

Price of gold dropped by more than $30 in a matter of minutes

After a period of robust growth, China's economic growth slowed unexpectedly in the first three months of the year. The slowdown spurred on widespread economic panic. In reaction, the price of gold plummeted to its lowest point in more than two years. The world's second-largest economy grew by 7.7 percent over a year earlier, down from the previous quarter's 7.9 percent, and short of hopes for about eight percent.

The S & P's 500 index slumped 18 points to 1,570, a loss of 1.2 percent. Of the 10 industry groups in the S&P 500, materials and energy stocks fared the worst, sliding three percent.

The S & P's 500 index slumped 18 points to 1,570, a loss of 1.2 percent. Of the 10 industry groups in the S&P 500, materials and energy stocks fared the worst, sliding three percent.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

4/16/2013 (3 years ago)

Published in Business & Economics

Keywords: China, gold, stock market, slowdown, production, grain


LOS ANGELES, CA (Catholic Online) - The Dow Jones Industrial Average dropped more than 155 points, or approximately one percent today. The NADAQ average was down more than 50 points, more than one and a half percent.

The S & P's 500 index slumped 18 points to 1,570, a loss of 1.2 percent. Of the 10 industry groups in the S&P 500, materials and energy stocks fared the worst, sliding three percent.

The FTSE 100 Index in London slumped 72.1 points to 6312.3, with fears over Chinese demand causing mining stocks to fall by as much as 13 percent. The index was down 74.08 at 6310.31 towards the end of the day.

It must be stressed that an economic recovery is still under way but is "really very soft - very slow and gradual," Societe Generale economist Wei Yao says. Other economists are quick to assuage any panic on Wall Street. "I think you're getting some panic selling right now," CEO of Planned Financial Services Frank Fantozzi added.

"People who have been holding on to gold expecting a rebound are now thinking, 'I better get out.'"

Analysts have warned that China's recovery from its deepest slump since the 2008 global crisis is weak and are being supported by bank lending and government-led investment.

A slowing of Chinese growth coupled with a demand for goods, ranging from iron ore to factory technology and consumer goods -- could send out ripples in the global economy.

The price of gold dropped by more than $30 in a matter of minutes at one point. Shortly before noon, the gold spot price was down almost nine percent today, at $1,370 per ounce.

Gold is already under pressure from a variety of factors, which include a proposed sale of Cypriot gold holdings and disappointing U.S. numbers last week.

Investors slashed their exposure to commodities, with oil, copper and silver falling hard and fast. Oil fell nearly three percent, silver dropped 10 percent, and industrial metals plummeted. Copper, in particular hit it's lowest in over a year. Wheat, corn and soybeans were all down.

An analyst at UBS Wealth Management Dominic Schnider says that with gold, "what we now see is panic selling, perhaps triggered by the Fed's stimulus view.

"The Fed has given the signal that there's a possibility to reduce QE (quantitative easing), and that took a lot of trust out of gold.

"And people recognize that an environment where you have no inflation is a powerful driver to get out of the metal."

Adding to the bad news is the fact that investment bank Goldman Sachs earlier predicted that the price of gold could weaken further.

The warning came days after French bank Societe Generale put out a report called The End Of The Gold Era, predicting gold would keep sliding this year and next.

"If you want to be worried about China, there's plenty to keep you awake at night," Sean Corrigan, chief investment strategist at Diapason Commodities Management in Switzerland says.



---


Pope Francis: end world hunger through 'Prayer and Action'


Copyright 2015 - Distributed by THE CALIFORNIA NETWORK

Pope Francis Prayer Intentions for April 2016
Universal:
Small Farmers: That small farmers may receive a just reward for their precious labor.
Evangelization: African Christians: That Christians in Africa may give witness to love and faith in Jesus Christ amid political-religious conflicts.



Comments


More Business & Economics

Obama brags in face of economic failure Watch

Image of The Obama administration claims the economy is thriving - but what is REALLY going on (TPNN)?

By Kenya Sinclair (CALIFORNIA NETWORK)

We all know "that guy." You know the one - the guy who is obsessed with conspiracy theories and who swears the government is out to get us. Well, according to newly released economic data, "that guy" might be (partially) right. LOS ANGELES, CA (Catholic Online) - U.S. ... continue reading


Yes, there's definitely something wrong with millennials, and here's what it is! Watch

Image of As far as millennials are concerned, the American dream is just that -- you have to be asleep to believe it.

By Marshall Connolly (CALIFORNIA NETWORK)

Across the country, the news is shocking. Over half of the millennials think socialism might be a good thing. Most of them believe the American dream is a myth, and public perception is that something is wrong with them. Why do they just want "free stuff?" LOS ANGELES, ... continue reading


Billionaire Soros warns China is near economic collapse Watch

Image of China's economy may be heading for trouble.

By Marshall Connolly (CALIFORNIA NETWORK)

Billionaire George Soros is sounding the alarm, China is about to go down and the rest of the world could follow. According to Soros, there is a major resemblance between China now and the United States in 2007-2008 just before the U.S. economy entered the Great ... continue reading


IRS issues dire warning before Panama Papers crackdown begins Watch

Image of The Panama Papers detail the tax evasion schemes of thousands of wealthy people around the world.

By Marshall Connolly (CALIFORNIA NETWORK)

The IRS has issued a warning to the rich who have been hiding money offshore - come clean now, before we catch you ourselves. The warning follows the leak of over 11 million pages of documents that detail the private, often hidden financial moves of wealthy people ... continue reading


Obama's Saudi masters order him not to sign 9/11 bill Watch

Image of It's not about the victims, it's about the Saudis.

By David Drudge (CALIFORNIA NETWORK)

Saudi Arabia is about to escalate their economic war with the United States should Congress pass a law that will allow victims of the 9/11  terrorist attacks to sue foreign states. The Obama administration opposes the bill and is lobbying against it. LOS ANGELES, ... continue reading


You won't believe how California's rich spend their money! Watch

Image of Top 1 percent pays nearly half of all California taxes (istockphoto).

By Kenya Sinclair (CALIFORNIA NETWORK)

When you think of California, images of sandy beaches, sun-kissed skin and Hollywood stars flash through your mind - and you're not wrong! California's rich enjoy all the sunny state has to offer - but at what cost? LOS ANGELES, CA (Catholic Online) - According to ... continue reading


Tesla KILLS American car industry in just 3 days. GOOD! Watch

Image of The Tesla Model 3 will sell for an average price of $42,000. Subsequent competition and models will reduce future prices even further.

By Marshall Connolly (CALIFORNIA NETWORK)

Tesla has blown away all predictions, selling over 276,000 pre-orders of their affordable Model 3 electric car, within 72 hours of going live. The massive public interest reveals a major shift in public preferences and should send shockwaves through the auto industry. ... continue reading


You won't believe what JUST happened to Walmart! Watch

Image of What does Walmart's revenue drop mean (WalmartDid).

By Kenya Sinclair (CALIFORNIA NETWORK)

The discount giant has received its first dip in revenue since its inception in 1996. Can the drop signify the beginning of the end? LOS ANGELES, CA (Catholic Online) - The digital age has marked a permanent shift in the way humanity perceives the world.One smartphone ... continue reading


Why Democratic Socialism is coming to America, whether you like it or not, and what you can do about it (but won't) Watch

Image of Presidential hopeful Bernie Sanders is a self-described democratic socialist. His movement is popular with millennials who are coming of age.

By Marshall Connolly (CALIFORNIA NETWORK)

America is in more trouble than people realize and here's why. The middle class is becoming poor, and as the ranks of the poor grow, our national politics will change. LOS ANGELES, CA (California Network) - The United States is changing and many people are having a ... continue reading


You'll never believe what the U.S. government is doing with $917 billion Watch

Image of How much do YOU owe (Shutterstock)?

By Kenya Sinclair (CALIFORNIA NETWORK)

How often do you swipe your credit card without considering your credit limit? When you don't have funds in your checking account, do you turn to credit cards to cover groceries, outings or bills? Have you considered what that credit card debt can do on a larger scale? ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Subscribe to Catholic OnlineYouTube Channel

the FEED
by Catholic Online

Daily Readings

Reading 1, Acts 15:1-2, 22-29
1 Then some men came down from Judaea and taught the brothers, 'Unless ... Read More

Psalm, Psalms 67:2-3, 5, 6, 8
2 Then the earth will acknowledge your ways, and all nations your power ... Read More

Gospel, John 14:23-29
23 Jesus replied: Anyone who loves me will keep my word, and my Father ... Read More

Reading 2, Revelation 21:10-14, 22-23
10 In the spirit, he carried me to the top of a very high mountain, and ... Read More

Saint of the Day

Saint of the Day for May 1st, 2016 Image

St. Marculf
May 1: Marculf is also known as Marcoul. He was born at ... Read More