"A year ago, the mood in Europe was horrible and nobody could see how on earth stocks could go up," says Gloom, Boom & Doom author and money-manager Marc Faber, who urged CNBC anchor Maria Bartiromo to buy gold earlier this week.
Gold recovered somewhat overnight in Asia and again today in Europe despite the sharp selling seen on the Comex yesterday. As ever, it is very difficult to pinpoint exactly why gold and all precious metals fell in price.
Wholesale prices to buy gold using US dollars or British pounds fell Thursday morning to trade just 1% below their seven-month highs of the last week. Commodity prices dropped once again with Asian and European equities.
Silver's nearly 3% surge in trading in Asia may indicate that the long expected short squeeze may be underway. Bullion banks with large concentrated short positions may be being forced to buy back their short positions - propelling silver higher.