Auguries—You And Whose Army?
May 10, 2012
By Kevin Michael Grace

Gold was down (at press time) $41.80 (-2.6%) for the week to $1,594.90, and silver was down $1.05 (-3.5%) to $29.10. Reuters attributed gold’s fall below $1,600 to “worries that the Eurozone debt crisis could worsen.”

Preposterous, but that’s Reuters’s story, and they’re sticking to it. According to Simon Avery of the Globe and Mail, “The [gold] collapse looks surprising given that investors are seeking havens in response to the political and economic uncertainty in Greece. Investors have been pouring into the US dollar for safety, which can work against the price of bullion, but there is more going on here than currency swings. (The price of gold is also declining in terms of the Euro). Traditionally, the precious metal has rallied during times when the future of the euro looks threatened.”

Read more of this article about gold prices.