David Fuller's view

I repurchased some Gold this morning because it has largely corrected a short-term overbought condition.  I paid $1337.7 for a December contract, including spread-bet dealing costs.  My bigger stakes remain in Silver (high-beta gold) and especially Platinum which still trades at a significant discount to Gold, albeit narrowing.

My biggest concern about precious metals is the publicised buying by various self-promoters, especially from the USA.  Their purchases do not make me feel more secure, not least because they will be future sellers, increasing volatility in the process.  However, this year’s moves to the upside do not appear excessive following a four-year cyclical bear market.  Precious metals are being remonetised in the eyes of investors and traders, so I think the recent pauses and reactions are no more than short-term consolidations within the upward trends. 

Stock markets have been carried higher by a rising tide of liquidity from central banks and a number of short-term overbought conditions are re-emerging.