by Ben Traynor, Bullion Street:
London Gold market report
Wholesale market gold prices traded as low as $1560 an ounce Friday morning, before recovering some ground by lunchtime in London, while European stock markets were also down and commodities were broadly flat.
Silver prices meantime sank to a 2012 low at $26.64 an ounce – a 7.2% drop on last week’s close. “We believe a break of $26.00 has the ability to trigger liquidation of silver with it looking for $18.00,” says the latest technical analysis note from bullion bank Scotia Mocatta.
Heading into the weekend, gold prices by Friday lunchtime looked set for their biggest weekly fall since the first week of March, having fallen 3.7% since the start of Monday’s trading.
On the currency markets, the Euro ticked lower against the Dollar, hitting its lowest level this week. “A decline in the Euro may have contributed to a drop in gold prices,” says HSBC precious metals analyst James Steel.