s we enter the summer, we want to know who is right, George Soros or the Chinese housewives who have been stocking up on gold. In today’s essay we will focus not only on gold itself, but also on the most versatile commodity — crude oil.
Wholesale prices for buying gold climbed briefly above $1,400 an ounce Thursday morning, having bounced from a $50-an-ounce drop overnight, with dealers reporting strong demand for physical bullion in Asia.
It was not exactly a lovely February for gold bugs. Between talks of a great rotation into risk-on assets, and confusing language from the Federal Reserve, the precious metal experienced heavy-selling pressure to reach new multi-month lows.
According to the calendar, it is still winter and gold markets still face some tough sledding, says Jay Taylor, host of the radio show "Turning Hard Times into Good Times." Big investors are leaving the market and small investors hesitate to reenter.
Gold has come under pressure from heavy liquidation by hedge funds and banks on the Comex this week. The unusual and often 'not for profit' nature of the selling, at the same time every day this week, has again led to suspicions of market manipulation.