Gold prices fell for a second straight day on Wednesday, retreating to levels not seen since October.
On Monday, gold closed at $745.80 an ounce, but as of Wednesday afternoon, that price had dropped to under $720. Prices have generally been on the decline since hitting a peak of $1,000 an ounce in March.
Part of the recent drop in gold prices can be attributed at least in part to a stronger U.S. dollar and falling oil prices, along with the general downward trend throughout the economy. However, gold is still typically seen as a fail-safe investment for weathering economic downturns, which could buoy its price in the current fiscal climate.
"With recessions only beginning in all major economies and the likelihood that recessions will be protracted and deep, safe-haven demand for gold is set to remain robust," wrote Mark O’Byrne of Gold & Silver Investments Ltd.
However, this optimistic long-term prognosis for gold is hardly unanimous.
"Gold is being pulled down by indiscriminate selling of virtually every asset. You could call it collateral damage," Jeffrey Nichols of American Precious Metals Advisors told the Associated Press.