19 July 2010
Gold Prices Fall Today on US Dollar, EU and Inflation
Gold Silver and Platinum register falls in morning trade.
Gold prices today continued the decent registered last week, dropping a further $10 on the spot market by mid afternoon in London.
Several factors would appear to play a part in precious metals weakness over the last week or so. Firstly, the misguided idea that the problem of European sovereign debt has been solved, or at least improved, appears based on Greece holding a successful bond auction to the private sector. Secondly, inflationary pressures remain subdued in the U.S., and has some traders looking elsewhere for safety.
Monday saw the U.S. dollar strengthening further, while the euro also made some gains, seeming on the surface to imply that gold is unwinding against the euro. But with "austerity" measures to address sovereign debt issues in Europe mostly not even in place yet, the game has not yet even begun to unfold.
Bullionsupermarket.com saw very heavy traffic on Monday morning with US Gold Bars trading at an average of 13% over the morning Gold fix.