FRIDAY, 11.30AM
The gold price, already under severe pressure for some time, plummeted on Thursday as the Australian reserve bank cut its reserves by a third, selling 167 tons of the precious metal.
Gold closed in New York ahead of the Independence Day holiday $5,90 lower, at $325,25/oz. Some analysts had expected prevailing conditions to see bullion testing the $325 level, but the magnitude of the drop took markets by surprise. There are fears that if the price falls to far it will precipitate massive selling by European central banks, who are eyeing bullion sales as a means to finance monetary union.
Meanwhile, Wall Street on Thursday saw stocks set several new records following news of a drop in unemployment. The Dow Jones industrial index closed at a new record of 7 895,81 points, up 100,43 points from the previous day. All other major indices closed at record highs.