Spot GOLD prices continue to decline in London, with an intra-day low of $1544.15 posted so far at 0720GMT. Prices picked up moderately to $1556.43 shortly before the European equity opening, but have since slipped back to currently trade at $1549.53, down 5.9 points on the day. A shift in haven interest from GOLD into the USD continued yesterday afternoon, as risk-off entered the arena shortly after the US opening, with reports of a possible real money account initiating a USD buy programme in New York ahead of year-end. Cash GOLD prices have now capped their longest slump since Oct 2009, whilst silver has also tumbled to a 3 month low, as projections for a more steadier USD outlook continue to take their toll on precious metals. Investors may now be losing patience with gold’s performance, with many left disappointed by its muted response to the latest wave of concerns regarding the eurozone despite its supposed role as a haven asset against such turmoil. Prices have now fallen back $377 from the record high of $1921.15 posted on 6 Jun, a fall of nearly 20%.
EasyForexNews Research Team