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Gold & Silver Suffer from Europe’s Crisis, Dry Weather Boost Wheat Prices

May 17, 2012 at 0:55 by Vladimir Vyun

Gold and silver erased this year’s gains as the credit crisis in Europe continue to weaken demand for raw materials. Talks about Greece exiting the euro-union are becoming more and more serious and some analysts even speculate about collapse of the eurozone. Traders seek a safe haven amid uncertainty and economic turmoil, but it looks like the dollar took the role of refuge that was traditionally attributed to precious metals. Gold was down from $1,541.40 to $1,535.80 per ounce on COMEX yesterday, reaching $1,533.80 intraday — the lowest price since December 29. Silver fell from $27.69 to $26.90 per ounce yesterday — the lowest settlement since December 29, while today it opened at$27.21.

Wheat jumped today for the fourth trading session as bad weather in various parts of the world threatened to curb output. Russia continues to suffer from drought and parts of Kansas suffer from the same problem. Russia is the world biggest exporter. Wheat is the fourth biggest US crop and Kansas is the biggest wheat-growing region of the United States. Wheat climbed from $6.3825 to $6.4325 per bushel as of 00:51 GMT on CBoT today.

If you have any questions and comments on the commodities today, use the form below to reply.

One Response to “Gold & Silver Suffer from Europe’s Crisis, Dry Weather Boost Wheat Prices”

  1. Arnav

    Very rightly said. Global gold demand in the first quarter of 2012 was 1,097.6 tonnes, down 5 % from the high demand levels seen in the same quarter of 2011 at 1,150.7t. However, Gold demand in India was affected in Q1 of 2012 by a number of factors; a new tax on gold jewellery, increases in the import duty for gold and weakness and volatility in the rupee. Jewellery demand fell 19 % to 152.0t from Q1 of 2011. Lets see, what gold has got in store for us.

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