29 Jun 2012 11:31 AM EST
-by Vania Andre, Staff Writer; Image: A gold bar mint in West Point, N.Y. (Image Source: AP)
Following the U.S. Supreme Court ruling on the Affordable Care Act, the price of gold and other commodities fell.
Thursday, the Supreme Court upheld President Barack Obama’s health care law, which requires all Americans have health insurance by 2014.
The decision has investors worried that the move will mean a decrease in disposable income for businesses as well as consumers. Some citizens also worry that the individual mandate in the health care law means less income, since according to the new law, all U.S. citizens will be required to purchase health insurance either independently or through employers by 2014 or else may face a tax, unless insurance premiums are greater than eight percent of their adjusted gross income.
Investors are also skeptical that the commodities they sold, including gold, to back U.S. bonds will have a return on their investment. Gold was hurt by a weaker euro, George Gero, a vice president at RBC Global Futures, wrote in an email to the Washington Post. Generally, the precious metal is considered a “safe haven.”
When the dollar is stronger, Gold is priced in dollars, making it more expensive for those who use other weaker currencies.
“Gold for August delivery fell $28 to finish at $1,550.40 an ounce and July silver dropped 69.5 cents, or 2.6 percent, to $26.247 per ounce,” the Washington Post reported. “July copper decreased 2.35 cents to end at $3.326 per pound, July platinum fell $23.30 to $1,386.40 per ounce and September palladium ended down $15.85 at $563.90 per ounce.”
“After 11 years it is only natural that gold stops and pauses for breath before taking the next step higher,” Saxo Bank vice president Ole Hansen said. “The worry is obviously that momentum has been completely lost and leveraged players [such a hedge funds] have left the building.”
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