Precious metals dumped their preciousness

The recession of US economy is a worm deconstructing the world economy and adding chaos on the speculative stock and futures market. As it was announced later the precious metals features for February considerably dropped 0.8 %, with $883.10/oz for gold (that by Jan.15showed the highest climb ever known to the history to $916.10/oz) and $15.97/oz for silver.
As a reaction Federal Reserve of the USA has introduced temporally emergency interest rate cut to slow down American deceleration and reduced its benchmark rate to 3.5%. It is the most significant reduction since the first introduction of changes in rates policy as the main managing device of monetary policy. More over we have witnessed the decrease of 4.6% in investment to the StreetTracks Gold Trust, the largest exchange-traded fund backed by bullion.

The situation turned to be even worse with the fell on the U.S. stocks. In January Standard & Poor's 500 Index fell 12 percent, demonstrating the worst start of the financial year. Borrowing costs were cut down 1 percentage point, reaching the benchmark rate of 4.25 percent. Investors' fears in US housing field would more likely lead to further recession of U.S. economy.

Natalia, reporter of Ecommerce Journal