Real estate agents are worried about the global economic downturn, but some believe the country has sold off its holdings of gold in an effort to keep the value of the metal higher.
Zillow Real Estate Services, a property-data company based in Washington DC, says it’s seeing “record” gold prices across the US and UK.
Zellers UK reported a drop of around 10 per cent in November from the previous month, but this was down from a 13.6 per cent drop the previous week.
The company says it has seen prices “significantly outperform the benchmark gold price”.
It says it saw a surge in sales of new homes and condominiums in the US.
The biggest drop in gold prices came in the UK, where the price of a gram of gold fell by around 3 per cent on November 18, from $1,988.
The same week, gold prices fell by more than 6 per cent, falling from $US1,078.00 an ounce.
Zeller’s UK report shows the UK has seen a 14.7 per cent fall in gold price from November 18.
The UK’s gold reserves have dropped from 1,700 tonnes in November to 1,500 tonnes in December.
In the US, the price has fallen by more or less the same amount, with the price dropping by 10 per 100 tonnes.
In December, the US gold reserve dropped by 1.4 per cent.
The US Department of the Treasury said it was “satisfied” that the US had reduced its holdings by more, though that it was not enough to prevent the gold from falling back to the $US7,500 mark.
“The US Treasury is fully aware of the situation and has taken the necessary steps to reduce the amount of gold that is held by the government, the private sector, and foreign countries,” a Treasury spokesperson said.
“In December, Treasury made adjustments to the current account and gross domestic product (GDP) balances that resulted in an additional $3.2 trillion in revenue, while the amount held by individuals, corporations, and non-financial organizations fell by $1.1 trillion.”
US gold prices have fallen by around 10 to 15 per cent each month since January, when they began a gradual decline.
Zillows US price is not the first time gold prices has dropped. “
This represents an increase of $3 trillion in the reserve balance since the beginning of the year.”
Zillows US price is not the first time gold prices has dropped.
In March 2017, US gold fell for three consecutive months, dropping by around 8 per cent to $1 the ounce.
In June 2017, the UK’s central bank said it would cut its benchmark gold interest rate by 30 basis points.
In October 2017, Britain’s central bankers announced the country would start selling gold.
“We’re going to get rid of gold,” said Bank of England Governor Mark Carney at the time.
“That’s just the way it is.”
Gold prices have dropped by more the same percentage since January.
In November 2016, gold’s price dropped by 5 per cent while gold prices in December dropped by 9 per cent and by 10.6 to the dollar in January.
The drop in global demand and the global devaluation of the pound and euro also helped lower the price.