After the awful tragedy in Japan placed doubts on Japan’s financial future some media reports said the gold rose on the back of that. We could not disagree more.
It has become a media tradition for moves in the gold price to be related to some political event or a civil war or a major tragedy such as the earthquake in Japan, when the events have a negligible effect on those markets.
fter the last two days of a strong gold price we are now looking at a quieter and lower day, which opened in London at around $1.424 at which it was Fixed [$1,424.25 down almost $7 - €1,029.08 up nearly €1].
We seem to be at one of the points in the market where physical demand dominates not only at the Fix but during the day as the price hardly moves from those levels.
The Silver Price is hitting new recent highs at $36.55 today in a more vigorous performance than even gold. Many in the developed world precious metal markets are amazed at the performance of silver and see this continuing, whereas others feel it is running away with itself.
Asia found the closing New York prices a little rich for their blood and took gold down to $1,427 before London’s opening, but just before London opened the gold price moved back up to $1,430 ahead of the Fix.
