The gold price has been continuing to decline on Friday morning. The spot price of gold fell to a four month low and is around 1,571.10 an ounce. Silver also took a 1% hit as well. The Equity markets in Europe and Asia also traded negative in part by JP Morgans $2 Billion dollar loss on credit default swaps.
The price of gold did receive some support from the latest producer price index data which measures inflation in the US, It has a .2% decline in April and Michelle Meyer (Senior U.S. Economist for B.A.M. Merill Lynch said “Looking ahead, cons umber prices should remain contained. The Fed shouldn’t be worried about inflation.”
Thursday for a brief amount of time gold snapped a 3 day decline and went above the $1600 an oz price, but today it is still down lower around $1588 as of 11:30am.