Gold and Silver Finally Decouple from Euro, Stocks and other Commodities
By: Adrian Ash
May 31, 2012
WHOLESALE BULLION gold prices rose Thursday lunchtime in London, extending yesterday’s sharp jump and cutting this week’s 2.5% drop by more than two thirds even as the Euro currency again slipped through $1.24 for the second day running.
Trading near $1564 per ounce, however, Dollar gold prices headed towards their fourth monthly drop in succession, losing some 5.3% in May.
Silver bullion neared the end of May more than 10% lower from end-April, despite rallying above $28 per ounce Wednesday afternoon in London when the Euro first slipped to those fresh two-year lows.
US crude oil was on track for a monthly drop of 16% says Bloomberg, its worst fall since December 2008.
The MSCI index of global stock markets has shed nearly 9% in May.
“Gold and to a lesser extent silver decoupled from the rest of the [commodities] group on Wednesday and started to head higher,” says a US analyst.
“Finally gold is behaving ‘normally’ and is ‘profiting’ from the fears surrounding the Euro,” agreess Commerzbank analyst Eugen Weinberg, “[resisting] the general downswing experienced by commodities and equities.