Gold Cuts 2009 Gains to 30% as Eurozone Hits Deflation, "Gold Rush" Hits ChinaTHE WHOLESALE PRICE of investment-grade gold dropped to a 3-session low at the start of London dealing on Wednesday, cutting its 2009 gains vs. the Dollar to 30% and losing 2.1% for the week so far.
World stock markets fell together with government bonds.
The US Dollar ticked higher on the forex market.
Crude oil held near a 77% gain for the year above $79 per barrel.
Copper and zinc traded at the London Metal Exchange ticked higher from Tuesday's 15-month closing highs.
"With [the Tocom gold futures exchange in] Japan out today and the holidays upon us, trading has been thin overnight and the market remains vulnerable to sharp moves," says a note from precious metals dealer Mitsui.
"The whole key to the gold market is the Dollar," reckons Marty McNeill, a trader at R.F.Lafferty Inc. in New York.
"We could have some strength in the Dollar going into the New Year."
"Between Christmas and year-end, the volume in the market shrinks rather drastically," says Afshin Nabavi, head trader at MKS, the Swiss refinery group, also speaking to the Wall Street Journal.
"Because of scale-down buying by traders looking to sell onto jewelers, the market is probably not as low as it could be."
