Recent cuts in U.S. interest rates are among the latest further steps taken by governments, and monetary and treasury officials around the world, to further stem damage from hemorrhaged credit markets and stimulate economic activity as recessionary conditions increasingly take hold of the world economy.
While commodity prices in general have been savaged, with crude oil prices now down by around 60%, gold bullion has fallen the least (in percentage terms) among the major commodities investors follow.
On Wednesday, the metal was changing hands at around USD 880 an ounce—some 15% below the record highs seen in March, and the highest since 8 October.
Dollar silver bullion prices have also recovered well in the past few months, but remain 46% below the March highs. In contrast with gold and silver, platinum group metal (PGM) prices remain in the doldrums, with palladium trading around 70% below highs, and platinum 62% down.