Yesterday EURUSD lost 2.08% while the US index gained 1.26%.
СМЕ Group’s gold lost as little as 707ounces while silver reserves lost 0.03%. The amount of gold silver, which is ready for delivery as the result of the bankruptcy of MF Global, remains the same: 16,645 and 1,420,916 ounces correspondingly.
ETF gold reserves increased by 93,374 ounces (0.1% a day 1.3% a week) up to 74.269M troy ounces. Yesterday SPDR Gold Trust’s gold reserves grew by 0.2%.
Silver keeps being almost twice (1.81x) as volatile as gold. On Friday both gold and silver gained their trading volume, while being traded in a wide range.
The markets are unstable as investors are concerned about latest events in Italy. Berlusconi insists on elections instead of provisional government. Elections will only make the situation more complicated. Greece has similar political problems. All that makes investors run away from risky assets. Gold and silver will keep losing their value together with stocks until investors stop seeing US bonds as safe haven assets. That will probably happen when the markets will be anticipating high inflation/hyperinflation.
Today Asian markets have lost 2.68% (Japan) - 4.48% (Korea).
Forecast. According to the Department of Commodity Trading, ,today gold may keep declining down to $ 1740/oz. It may also retrace up to $1780/oz. Silver is expected to try breaking below the levels 33.5 and 33. It may also recover up to $34.5 per ounce. The markets are nervous and rather volatile on news.
