Gold sold off yet again yesterday with the USD index making highs it has not touched since the spring of 2003. The euro is almost at parity with the USD, trading at under 1.05 earlier in the trading session today… start planning your summer trips to Europe now! Besides today’s session, where gold barely closed above yesterday’s Comex settlement, gold has trader lower (eight consecutive trading sessions) in every day of March so far. Physical demand is picking up in the Far East but has still not been significant enough to stop the downward trajectory. Historically, March is a slow period in China for physical gold demand as it comes immediately after the stock-piling period of the Lunar New Year.
Gold caught bids early today with the euro making a brief stand against the USD. US equities closing up over 1% and crude oil moving 2% lower weighed on gold as the day wore on though. Gold has more or less held the $1,150 area over the past two days but the next major support level that traders are keenly watching is at $1,132, a five year low. Silver fared better than gold today and managed to gain $.20 / toz. Support is coming in at $15 while rallies will likely be sold into ahead of the $16 handle.