Thursday, December 15, 2011
EU pessimism hit euro's value
Dec 14, 2011 by
Euronews
http://www.euronews.net/
Worries about a lack of a solution to the eurozone sovereign debt crisis caused the euro to take a pounding on the foreign exchanges on Wednesday.
Worries about a lack of a solution to the eurozone sovereign debt crisis caused the euro to take a pounding on the foreign exchanges on Wednesday.
Pre-Christmas Sale Now On for all Precious Metals
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(MarketWatch) — Gold futures skidded nearly 5% Wednesday, sinking below the $1,600 level for the first time in nearly three months, as a drop in the euro signaled a new level of anxiety about the region’s debt crisis and investors sought cash as the safest asset.
The decline blew the yellow metal past some long-held technical levels, which then exacerbated the selloff. Silver futures, which often shadow gold’s moves, closed down 7%, copper lost nearly 5% and palladium sank almost 7%.
A combination of factors sent gold prices lower, with concerns over Europe at the forefront. But in contrast to long stretches of the past two years, investors have been choosing dollar-denominated cash over gold in recent weeks.
“It’s the never-ending European debt crisis still playing out, combined with some year-end profit-taking and a weakening of the euro,” said Jeff Wright, metals and mining analyst at Global Hunter Securities. “A number of funds are rotating into money-market funds in the U.S. It’s safe and they don’t have volatility,” he added.
Gold’s decline early in the session sent the contract below a 200-day moving average of around $1,619 an ounce, its first break below this level since January 2009. The drop deepened from there, pushing the contract below $1,600......read on
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