by Alasdair Macleod, Gold Money:
Hedge funds and high-frequency traders have finally forced gold into a US dollar loss this year as shown in our introductory chart, but silver is still in positive territory.
This week gold declined $29 with a break from the $1200 level to $1171, and silver fell 40 cents to $15.70 early this morning in European trade.
As I wrote last week, in the run-up to the half-year precious metals’ prices face a conflict between window-dressing for the lowest possible valuation, and the systemic risk that is Greece. The window-dressing motive is still there, but the pressures from Greece lessened on Monday when everyone thought a deal had been agreed, leading to a relief rally in equity markets and a corresponding fall in gold. As the week progressed it became clear that the proposed deal was not acceptable to the troika* of the IMF, ECB and the European Commission, but precious metals continued to drift lower.
Please follow SGT Report on Twitter & help share the message.