Gold
The gold price dropped from Monday's highs due to profit taking and fell to around USD$1,232 before recovering to $1,242 (bid) / $1,247 (ask) on Friday morning (NZT).
All in all it has been an eventful week with reached on Monday. Typically June and July are slow months due to summer holidays in the northern hemisphere, but weak US data and a continuation of Eurozone debt issues has lead to more activity.
The Bullion Desk said in today's update "Gold prices strongly rebounded during afternoon trade on Thursday, as record high Greek credit-default swaps triggered safe-haven demand, while buying also emerged for exchange-traded funds based in Switzerland, traders said."
The Inflation Debate
"The gold market was partially supported off the Fed's widely expected promise to leave US interest rates low for an extended period of time. However, gold was also somewhat undermined by suggestions that the Fed was a little more guarded on the track of the US economy," said Nell Sloane at NS Futures. "In the near term, the gold trade will probably continue to focus on the debate over the direction of the global economy and the prospect of deflation or inflation," Sloane said, adding that resistance stood at $1,259.20 and support at $1,214.90 per ounce.
There are countless discussions going on about inflation, hyperinflation, deflation and stagflation but we found this interesting article about hyperinflation that we thought you might like.
Currency
Yesterday the NZD/USD reached a 6 week high of 0.7161 and is currently sitting around 0.7020 (ask) and 0.7125 (bid). This small decline is due to a combination of risk aversion and profit taking.
NZD Gold
Currently gold is sitting around NZD$1,740 (bid) and NZD$1,777 (ask).
