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Gold firms plan drastic cuts to stay afloat as bullion sinks

Gold firms are struggling and in order to stay afloat they are planning to take some drastic steps. Most of the gold producers are cutting jobs and stopping dividends, some firms have also been forced to stop ongoing projects and even shut down mines. But despite all this, many of the firms may not survive.

Gold prices have dropped to $1,137.40 per ounce which is the lowest that gold prices have fallen in the past four years. Last year gold saw a 28% price drop as it went down to $1,196. That was a nightmare situation for gold firms and many were forced to shut their doors. However, the prices again climbed up in the beginning of 2014. Unfortunately, it looks like gold prices have been in a downward spiral again for the last 3 months and gold producers are having a very hard time coping with the situation.

Gold is a special commodity as its price doesn’t depend completely on the demand and supply policy, instead, it depends on the global economic scenarios like inflation and interest rates, as such it is very hard to predict which way the market will move at any given time.

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