Latest update April 24th, 2026 12:40 AM
Gold falls to lowest in four years
The Ministry of Natural Resources and the Environment, along with the Guyana Gold Board, yesterday said it is continuing to monitor the trade of gold and the movements in prices over the last couple of weeks.
“Gold held near the lowest since 2010 on expectations the Federal Reserve is preparing to raise interest rates while other central banks add stimulus, boosting the dollar and hurting bullion demand,” the Ministry said in a statement yesterday.
Gold futures were little changed in New York as a decline in U.S. equities boosted demand for the precious metal as an alternative investment. Gold tumbled almost 5 percent last week, dropping to the lowest since 2010 on October 31.
“The weakness in the equity market is providing some support to gold. Also, the dollar is taking a breather, and that is helping gold. The metal swung between gains and losses, dropping as much as 0.5 percent and climbing 0.4 percent earlier on the European Commission’s cut to euro-area growth forecasts.”
The precious metal dropped to $1,160.50 on October 31, the lowest for a most-active contract since July 2010.
“Gold just holds above $1,158, the 61.8% retracement level of the move from the October 2008 low to the September 2011 highs. The gold bears remain in firm technical control as prices trade not far above the recent four-year low. The key “outside markets” remain in overall bearish postures for the precious metals—a stronger U.S. dollar and slumping crude oil prices.”
According to the Ministry, the “outside market” feature was the drop in crude oil prices to a three-year low of US$75.84.
“Combined with the appreciating value of the U.S. dollar, these two outside markets have been a major influence on other markets the past few weeks—and especially a negative force for the raw commodity sector, including gold and silver.”
Gold has been the biggest foreign currency earner for Guyana in recent years.
However, world prices fell from a high of almost US$1,900 per ounce to below US$1,200 sending local producers scrambling last year. The industry had been attracting workers in droves, but a number of operations have closed.
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