Auguries — Structural FailureNovember 17, 2011
By Kevin Michael GraceGold was down (at press time) $41.60 (-2.4%) for the week to $1,717.60, and silver was down $2.46 (-7.2%) to $31.50. Reuters attributed the declines to “investors fearful of deepening European woes bail[ing] on commodities and technical triggers set[ting] off sell orders.”
At MarketPulseFX, Dean Popplewell argues that gold is “suffering from contagion flu. The yellow metal fell just over -1% today, diligently tracking the [Euro] lower. All of this is on fear that the EU debt crisis is spreading and dragging France into the fray, while Greece and Italy battle to save their economies from imploding. Historically, gold is favored in times of uncertainty, however, the commodity is moving in close correlation with riskier assets recently as investors liquidate some of their commodity holding to finance margin requirements in other accounts.”
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