The gold price passed though USD$1200 an ounce as investors sought safe havens from the financial unrest in Europe and significant drops in the DJI and Nasdaq overnight.
The primary question at the moment, is whether this price increase will continue, or trigger a round of profit taking at the end of week trading tonight.
The Dow Jones dropped by 400 points on overnight trading, and then due to what has been described as “fat finger technical issues” dropped another 600 points in 25 minutes, before paring the overall loss to 450 points.
Concerns over the debt positions of more Euro countries (Spain, Portugal and Italy are being looked at closely) and the reaction to the Greek Austerity cuts are pushing investors away from the Euro and into safe haven and lower risk investments like the USD$, or Gold. This has a twofold effect for the Gold in NZD$, with the NZD/USD potentially dropping further on a strengthening USD$ and the Gold price pushing to new highs.
Silver did not move particularly much overnight trading within a USD$0.40 range.
All of this leads to what can only be described as an exciting rollercoaster ride for Gold, Currencies and equities for the short term.
