If it weren't so lucrative for gold futures traders and brokers, it'd be almost boring: Gold set another record today, rising to a high of $1,366 per troy ounce before retrenching slightly to $1,342.60 per troy ounce.
Silver performed similarly, as December delivery contracts climbed to a high of $23.53 per troy ounce before slipping 11.3 cents to $22.93 per troy ounce.
"When there are currency upheavals like we have now gold seems to be a good deposit against currency holdings, because gold maintains purchasing power," George Gero, vice president at RBC Capital Markets Global Futures, told the Wall Street Journal on Thursday.
The government of Vietnam also delivered bullish sentiment by saying it might loosen import restrictions on gold, as local gold markets have gotten tight.
Commodity futures markets and traders appear to be busily pricing in the potential impact of further asset purchases from the Federal Reserve – in the minds of many investors and brokers, more quantitative easing is now a virtual certainty.
And it's not just the U.S. dollar which is under siege – the Bank of Japan is busily shaving interest rates and expanding its balance sheet to prevent the yen from rising, while China is committed to its undervalued yuan.
Brazil, Switzerland and numerous other countries with appreciating currencies are fighting that appreciation – and commodity futures appear to be the main beneficiaries.
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