May 2013, Week 2 Edition

Gold vacillated last week, reaching a one-month closing high last Wednesday at $1474 per ounce, but then it declined to $1449 on Friday and $1435 Monday morning, May 12. Gold's strength early last week resulted from a report on Tuesday that Chinese gold imports from Hong Kong - a major indicator of rising Chinese gold demand - soared in March. Gold's decline late last week and early this week resulted in large part due to a soaring dollar - which depresses gold. The dollar hit 102 yen, a four-year high, plus a 12-month high to the Australian dollar and a one-month high to the euro.