Gold traded in a broad range yesterday, topping out over USD$1190 and reaching a low of USD$1160 overnight before returning to the USD$1175+ range for the start of trading today.
Silver followed the trend, dropping from a high of around USD$18.80 to a low of USD$17.10 before climbing back to the mid $17 range.
Prices for gold in NZD improved overnight, primarily due to the NZD/USD dropping. Currently spot is trading around NZD$1620.
Most of the movement is due to continuing Euro zone issues, with the fear of contagion now becoming the prevalent driver in most markets. The EUR€ suffered against most currencies, with NZD/EUR being the only increase in the NZD exchange stable overnight. The NZX suffered its biggest drop this year, with most markets taking large drops – fear of continuing instability moving investors away from riskier investments.
