Gold and Silver are trending lower due to world concerns. It was an up and down
week in the U.S. stock market due to these overseas concerns. Economic reports
in the U.S. were relatively positive during the week, but world news
overshadowed with anxiety provoking reports. As of end of week close and last
trade posted in the U.S. session this week, gold and silver price per ounce had
fallen. Gold for December delivery price per ounce was lower by .77% at
$1,362.40. Silver price per ounce for December delivery contract was lower by
3.01% at $26.70. Gold and silver fell lower on Friday on continued apprehensions
relating to the North and South Korean animosities, in addition to anxieties
relating to the European debt crisis and financial instability. China is the
largest consumer of metals and as the Chinese government continues attempts to
slow down its economy, apprehensions in this sector grow. Overall in 2010, Gold
has jumped 23%. Analysts believe that the price jump overall stems from oversees
demand, but the message out of China right now is indirectly negative. The move
to slow down their economy will be interpreted as an inflation reducing event
and increase apprehensions about investing in precious metals right now. In
addition, the dollar is gaining relative strength on the euros struggles. A
recession in Europe is possible and the the euros struggles are boosting the
dollars value. The inverse relationship between the dollar and precious metal
investing may also stem the tide for the safe haven asset acquisition in the
current global economy. Author: Camillo Zucari
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