Gold prices broke to under the pivotal $1,700 mark overnight, and did so despite a slightly weaker US dollar, despite a firmer euro, but alongside almost 1% weaker crude oil values. The decline was partially attributed to an overall slide in commodities.
This region is flush with resources – as much as 213 billion barrels of oil (10 times the proven US reserves) and 900 trillion cubic feet of natural gas (equal to all the reserves held by Qatar). There's also a rich fishing ground that employs thousands and feeds millions.
Friday's market action in precious metals got off to a bit of a mixed and rocky start as the US dollar continued its ascent on the trade-weighted index and as traders began to square books and close the trading logs on a quarter.
The rising demand for silver bullion products with 99.99% fineness has started a new trend - silver denominated notes reminiscent of turn of the century American silver certificates are becoming quite popular.
Precious metals dealings once again opened mixed in New York, with gold and silver still free from the effects of any profit-taking gravitational pull and with the noble metals exhibiting the opposite condition.
Never has there been a divergence between the price of the rare earth ores and the developing rare earth miners as there is now. The current commodity correction has caused the high flying rare earth sector to plunge to critical support levels.