16 August 2010
Gold price makes solid progress on Eurozone inflation
Firm commodities and Eurozone inflation bolster Bullion
Gold made solid progress on Monday morning in London, rising above $1,225 per ounce, before succumbing slightly to profit taking by lunch time.
Bullions strong run of the previous week was built on by sagging world stock markets, broader commodity price gains and this mornings Euro zone inflation report. The annual inflation rate in the 16-nation euro zone rose to 1.7% in July, up from 1.4% in June, the highest rate since November 2008, figures released by Eurostat showed.
With gold and silver quotes moving higher in the face of a weakening global economic outlook and a weaker US Dollar, it may appear that a "flight to quality" sentiment is gaining traction again.
With some commentators pointing to the "death cross phenomenon" in stocks, where the 50 day moving average crosses the 200 day moving average on the downside, this may be adding further demand to Gold and Silver.
Fixed price 1 troy oz Gold bar premiums had more or less held station, changing hands at an average of 15.26%.