Demand related to inflation and safe-haven fears has been driving gold. I particularly believe numerous gold traders are watching the Iranian situation with great interest, since it has both inflationary and safe haven implications. |
Everyone talks about a persistent production deficit, but at some point we are expecting supplies to move into surplus. |
It certainly gives the idea that the Chinese might diminish demand for all kinds of goods, including the metals and energy. This raises concerns the Chinese might undertake a pattern of raising interest rates. |
Most of this is new buying for the exchange-traded fund. That is playing a role in strengthening the market. |
New buying comes in virtually every time gold turns around. |
Oil prices and continued inflammatory comments from Iran are driving gold. |
The gold market held its ground. That it stayed well above $600 in the face of the silver sell-off convinced investors that it's still involved in a bull market. |
There's a lack of confidence in the dollar at this point, so a lot of the hot money is seeking the metals. |
We're seeing an increasing amount of capital in the commodities market in general and gold in particular. |