Gold value drops again

The reputation of gold as a safe haven in times of economic crisis has been hit again, as the value of the commodity has fallen.

Spot gold fell 0.34 per cent to $1,389.49 an ounce today (May 28th), cancelling out the gains of 0.5 per cent that were recorded by the precious metal yesterday.

According to a report by Reuters, physical buying remains strong in Asia, but the health of the commodity has been damaged badly over the course of the year so far.

It was noted by the news provider that the metal gained two per cent last week, which meant it enjoyed its strongest week in a month.

US gold managed to buck the trend of the falling value of the precious metal and it rose 0.16 per cent to $1,388.80.

Brian Lan, managing director of GoldSilver Central Pte Ltd in Singapore, recently explained stocks and shares are being seen as a more appealing option than gold at the present time.

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