“The issuer’s promise” is a phrase I have used recently to describe the backing for fiat currencies.
U.S. DOLLAR gold bullion prices continued falling during Friday morning’s London trading, extending losses from the previous day to hit $1592 an ounce by lunchtime, while stocks and commodities also traded lower and US Treasury bonds gained ahead of the release of June nonfarm payrolls data.
U.S. DOLLAR prices to buy gold climbed back above $1600 an ounce on Friday, after disappointing US jobs data was then followed by news of a slowdown in American manufacturing activity.
Gold, traditionally a safe-haven asset, has been moving in tandem with riskier assets such as equities, industrial metals and oil this year, as investors for some reason which is difficult to fathom, have turned to the supposed “safety” of the dollar.
U.S. DOLLAR gold prices rallied to $1640 an ounce Friday, following the release of disappointing US nonfarm jobs data, though they remained more than 1% down on last Friday’s close.
It may not seem like much happened yesterday, but a very important event occurred.
U.S. DOLLAR gold bullion prices dropped to $1643 an ounce Tuesday lunchtime in London – 1.0% down on Friday’s close – as stock and commodity prices also fell and US Treasury bonds rose.
THE DOLLAR gold price fell back through $1700 an ounce as US markets opened on Monday, continuing its slide begun when Asian markets opened several hours earlier.
As we go through the first significant pullback in the market for 2012, the dollar seems to be at a turning point that should influence market trends for the next few months. Going all the way back to 2002, there has been a strong inverse correlation between stocks and commodities, and the U.S. dollar.
U.S. DOLLAR gold prices were on course for a second weekly fall Friday lunchtime in London, heading down towards $1700 an ounce following European ministers’ rejection yesterday of Greece’s latest austerity reforms.