Gold Seen “Tracking the Dollar” as “Ticking Timebombs” Threaten Euro Currency

By Adrian Ash, GoldSeek

London Gold Market Report

THE PRICE OF GOLD was little changed Thursday morning in London, recording its lowest AM Fix since Nov. 13th at $1125 per ounce as the US Dollar held onto this week’s rally on the currency market.

Both the Swiss and UK central banks kept their key interest rates at historic lows of 0.25% and 0.50% respectively.

Gold priced in Euros and Sterling hit new 3-week lows below €762 and £690 an ounce.

The Paris stock-market fell hard on news the French government is followingLondon with a one-off 50% levy on banking bonuses.

“While gold holds below former support at $1138, the risk remains for a deeper correction to channel support at $1086,” says the latest analysis from Scotia Mocatta, noting the uptrend in gold starting Sept. 1st.

“Major support in gold is seen at $1019 which is the 38.2% Fibonacci correction of the $683 to $1226 one-year up move,” it adds.

Crude oil contracts meantime struggled to recover above $71 per barrel after Wednesday’s surprise build in US petroleum-product stockpile inventories.

Copper prices fell for the sixth session running in London, extending their longest drop in 12 months.

“Gold and silver basically were tracking the Euro today,” reports a Hong Kongdealer in a note.

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