Global spot gold and crude oil prices are continuing to fall as investors head back to US cash amid the European financial turmoil and poor economic data from several major economies.
Spot gold prices have fallen $US64 ($NZ80.70) per ounce during the past week to trade near $US1600 yesterday, while West Texas crude has come down almost 9% during that time, falling from $US112 per barrel in April to around $US97 yesterday.
The US, Greece, France, Spain and China have generally under-delivered in recent weeks in key economic data, or are in political turmoil, causing investors to flee to safer assets elsewhere.
Gold was historically the go-to investment in troubled times and did not always reflect oil trends, but investors were repatriating funds to US dollars, in order to retain liquidity in asset portfolios, Craigs Investment Partners broker Peter McIntyre said.
"Because of renewed awareness in European affairs, with the French elections and Greece's inability to form a government, investors are going to [US] cash to maintain their liquidity," he said.
Gold, since coming off a record high above $US1900 in September last year, had been steadily trading down.
Shares in New Zealand's largest gold producer, East Otago-based Oceana Gold, had, since the start of the year, peaked at $3.26 in early April, before declining to $2.90 last week.
During the past three days they plunged more than 15%, to trade around $2.46 yesterday.
Mr McIntyre said while a lot of profits had been taken, anyone having purchased gold a year ago in January at $US1348 could still be selling and making gains.
From April to yesterday, Brent crude oil, from the North Sea, fell from $US120 per barrel to trade around $112.
