Germany’s central bank will repatriate part of its $200 billion gold reserves stored in vaults in the Federal Reserve in New York and the Banque de France in Paris. It is believed that the Bundesbank may have repatriated the gold to be prepared for a systemic crisis and currency crises.
This morning’s opening in precious metals was showing gold prices marginally higher, spot silver bids somewhat lower, and some mild gains in platinum and palladium. Rhodium fell $25 to $1,275 per ounce.
As with oil, gold and silver have carved out an increasingly significant correlation with the S&P 500 as the spectrum of assets that have benefitted from cheap funding through QE2 correct higher in tandem after last week's broad-based selloff.
As a result of a very good jobs report, gold and silver prices immediately headed somewhat lower today (at last check, gold was nearly $13 into negative territory, while silver fell 49 cents), while the greenback showed a modest improvement.