US markets definitely decided on a risk-averse end to 2011, dumping euros and precious metals at a rate of knots Thursday.
(1888PressRelease) December 31, 2011 - MIAMI, FL - The main blame for Thursday's slide in the price of gold, given that the final week of the year is holiday time in the US and trading is necessarily thin, seems to lie with the ongoing situation in Europe. Despite recent loans to banks from the ECB, the European banks have not done a great deal to put that money into circulation and help the struggling economies of many euro zone nations. The euro slid to less than $1.29 today.
Gold has suffered not only from a stronger dollar but also from reduced physical demand, or the anticipation of reduced physical demand, from Asia. The stronger dollar makes gold very expensive to buy in rupees and this has definitely impacted the Indian market, although we can expect to see this pick up in mid-January as we approach the celebrations for the Lunar New Year.
"A strong dollar makes gold and other precious metals expensive for investors who are paying in other currencies," says Bill Hionas of Pan American Metals of Miami. "The price therefore falls as there are fewer buyers at the more expensive price point."
Gold moves inversely to the dollar and, in the absence of any economic data from the US, there is nothing to stop the current fall. The dollar will move lower on negative economic data such as unemployment, disappointing growth, a decrease in house sales, etc. At this time of the year, this data is not being published. In a risk-averse market, the dollar is king - for now.
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Pan American Metals of Miami, LLC is a group of traders, investors and account executives that combines many years of experience to help clients invest in bullion. PAMM provides an individual investment service and is based in Miami, Florida for convenient access to both North and South American investors.
Website: http://www.panamericanmetalsofmiami.com
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Pan American Metals of Miami, LLC
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US markets definitely decided on a risk-averse end to 2011, dumping euros and precious metals at a rate of knots Thursday. 
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