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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 euro’s struggles. A recession in Europe is possible and the the euro’s struggles are boosting the dollar’s 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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