Gold and Silver Finally Decouple from Euro, Stocks and other Commodities

Thursday, May 31, 2012
By Paul Martin

By: Adrian Ash
Market Oracle
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.

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