With election season coming up and the U.S economy balanced on the knife-edge between recession and recovery, precious metals futures brokers and traders are uncertain which way to jump now that gold has hit a new high. Yesterday, spot gold hit $1,276.50 per troy ounce before settling at $1,269.70 per troy ounce, an increase of 2 percent.
Investors pulled back a bit today, as gold futures for December delivery retreated $1.80 to $1,269.90 per troy ounce. Many commodity traders likely remain on the sidelines, and volumes remain weak. Contracts for December delivery were by far the most popular on CME's Globex.
"We are long gold," Dennis Gartman, an economist and the editor of the Suffolk, Virginia-based Gartman Letter, told Bloomberg News. "The only decision before us is when to add, and for the moment, we'll simply sit tight, awaiting the inevitable correction after the fireworks of yesterday."
Indeed, profit-taking often follows after record highs – and gold has been particularly susceptible to that phenomenon lately, as asset and fund managers sell the metal to cover losses from other assets.
Silver futures for December delivery gained 13 cents to trade at $20.565. Despite the gold's record highs, silver has out performed it over the last five days by about 1.75 percent.
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