Gold is consolidating above $1,500/oz after rising from just over $1,400/oz at the start of the year to a record nominal high of $1,567/oz. The real risk of a eurozone break up and financial contagion is supporting gold prices.
Gold is marginally lower in all currencies today, except sterling, after UK retail sales plunged in March due to deepening inflation. Silver has recovered somewhat from yesterday's sell off and is nearly 1% up against major currencies.
Who is responsible for the commodity and food inflation? Bernanke denies that it is the Fed. And, of course, the cause of inflation is hard enough to prove in a domestic economy, much less from policies followed by other central banks.
Gold and silver have recovered somewhat from slight falls in Asia overnight. With geopolitical instability looking set to climb and possibility of a military confrontation in the Mediterranean, any sell off of precious metals will likely be tentative.