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.
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.
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.
New buying comes in virtually every time gold turns around.
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.
Most of this is new buying for the exchange-traded fund. That is playing a role in strengthening the market.
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