Gold off today on profit taking, silver following suit. All’s quiet in Asia.


Gold had another minor reversal today at the hands of speculators taking short term profits. Silver tracked back as well, but less so.  Gold as this is posted is trading in the $1320 range – down about $11 on the day.  Silver is down about 15¢.  There was not much in the way of news.  Asian gold and silver markets are quiet again tonight – trading sideways.

Scroll down for a more detailed look at today’s events.  The post by USAGOLD founder, Michael Kosares, on William White’s recent Bloomberg television interview is worth reading. White says the economy is facing “more dangers now than 2007.”

Here are a couple of overlay charts – one on the year thus far and the other since 1970 – for newcomers who would like to better understand the oft-referenced correlation between the US dollar and gold.  Note particularly the distinct downtrend in the dollar against the other major currencies in the index since 1970 and against gold. That’s the real story.

(Please see “Surprise gold advocates” for portfolio advice from a couple folks in the know.)

Chart note: Despite all the discussion about beggar-thy-neighbor currency policies carried out by America’s competitors, it is the dollar – not the other major currencies  – that has suffered the worst depreciation since 1970.  The one year chart shows a similar relationship only over the shorter term.  The long term chart includes trend lines from 2000.

If you would like to see our take on what’s pushing gold and silver these days, you might want to sign-up for our free newsletter, available with appreciation to our current and prospective clientele. Immediate access. Weeks ago, we took the emphasis off North Korea (though we didn’t eliminate it as a cause) and put it on five other more enduring factors.  Those are the factors covered in the newsletter.  It was interesting to see that Goldman Sachs took the same tack last week.  (This gold note is under the heading, What is behind the ‘quiet’ summer rally in gold and silver.)

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