Gold prices were down more than 0.4% to $1,541 an ounce around 10:40 AM London time on Wednesday, after hitting a near six-year high of $1,550 an ounce in the previous session amid fears of a global recession and uncertainties around the US-China trade war and Brexit. The drop in gold prices comes despite a weaker dollar while some trading investors are taking advantage of Tuesday’s gains to book profits. Meanwhile, Silver prices rose nearly 0.7% to $19.3 an ounce, close to a near three-year high. Historically, Gold reached an all time high of 1920.30 in September of 2011 and a record low of 34.83 in January of 1970.
The biggest producers of gold are China, Australia, United States, South Africa, Russia, Peru and Indonesia. The biggest consumers of gold jewelry are India, China, United States, Turkey, Saudi Arabia, Russia and UAE. Gold Futures are available for Trading in the Commodity Exchange (COMEX) which merged with the New York Mercantile exchange in 1994 and became the division responsible for metals trading. Half of the gold consumption in the world is in jewelry, 40% in investments, and 10% in industry. However, Gold is not only a precious metal but also a commodity vital for many industries. Gold is an excellent conductor of electricity, is extremely resistant to corrosion, and is one of the most chemically stable of the elements, making it critically important in electronics and other high-tech applications.
