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25 October 2011

Gold Pops to $1,700 Dollars on Renewed Safe Haven Status

Falling consumer confidence, softer than expected housing numbers in the United States, combine with jitters

Consumer confidence in America fell to its lowest level since March 2009, and S&P Case-Schiller index of home prices failed to deliver the expected increase on Tuesday causing gold to leap some 3.2% to above $1,700 per troy ounce, at time of writing Silver had leapt to $32.81 an increase of 3.2% having been as high as 4.8% up.

European drama contributed to the precious metal rally as reports of delayed key meetings in Brussels, at the Eurozones summit to announce a final (no really) Greek bailout filtered into the market. Equity markets sank in response to developments, as previously dormant safe haven bids returned to the precious metals market.

Why Gold’s safe haven status should suddenly return today, is a much as mystery to us as anyone else. Particularly as today’s economic numbers from the US should have provided about as much a surprise to the market as European leaders failure to get a grip on events in the Eurozone.

At physical metal showed signed of increasing availability as the number of 10 ounce silver bars for auction increased slightly. 5 and 10 gram gold bar availability also increased marginally.

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