Gold continued to give ground today in a continuation of the profit-taking/position rejiggering that began yesterday. It is trading at $1333 and down almost $8 on the day. Silver finds itself in similar straits, down 16¢ at $17.06. An attempt to recover during Asian trading hours last night failed at the $1344 level for gold and $17.28 for silver. The London market was relatively quiet.
Undergirding the precious metals markets are general concerns about the overall health of the financial markets going forward. Reuters reports this morning that “In the longer term, gold will be supported by risk that global share prices could fall from record highs and strong growth around the world could stoke inflation. ‘Concerns regarding (share price) overvaluations and the possibility of rising inflation have reignited interest in gold,’ Standard Chartered analysts said.”
Chart of the Day
Last night we mentioned gold’s strength in terms of the Japanese yen. For the curious among our readers, here is the two-year chart for gold in yen from our friends at Gold Charts ‘R’ Us. Note the spike that began in mid-December.