GOLD, SILVER & PRECIOUS METALS MARKET WRAP

The price of gold has become one of the dominant themes in global markets over the past couple of years as the financial crisis unravelled. The Gold wrap reports on the latest trends in the price of the precious metal as well as factors influencing the demand for the safe haven asset.

(gold-on-verge-of-record-40 year old slide-)

Gold on verge of record slide

By Philip Whiterow
March 13 2015, 2:48pm

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Gold edged higher, but was still on the verge of its worst losing streak for over forty years.

It had fallen nine days in a row before today and not since 1973 has the metal fallen as consistently and for long as this.

It has been the relentless climb of the dollar that has piled on the pressure.

The euro, in particular, has collpased with the launch of the €1.1trn quantitative easing campaign by the European Central Bank.

Gold traditionally is used to hedge against falls in the dollar but with the US currency at 12-year highs against a basket of rival currencies, institutional demand for the metal has waned.

Goldman Sachs today warned not to expect any respite for the European currency as it forecast it will reach parity with the dollar in September before heading down further.

Indeed, Goldman expects by 2017 forecasts a euro will be worth just 80 cents, an all time low for the currency.

It will be good news for holders of gold in Europe, where the price yesterday briefly rose above €1,100, but overall the mood in the gold market was very subdued.

The recent slide in equity markets has provided little respite and gold was only a few cents higher at

US$1,153 despite a 100 point fall in the Dow on opening.

Silver was flat at US$15.50, while platinum edged down to US$1,111.