Gold reversed its usual trend of dropping on the COMEX opening bell this morning, shooting up $7 an ounce and butting its head against the $1,730 mark in early U.S. trading. Platinum saw some profit taking overnight, falling in the Asian markets after breaking $1.600/oz yesterday, but is showing early growth this morning in the U.S. market. Palladium is holding on to yesterday’s gains, trading above the $650/oz mark this morning.
Markets are roiled today from the riots and demonstrations across southern Europe in response to new austerity measures, with violence not only in Greece, but Spain and Portugal. Added to the global uncertainty of whether the U.S. is going to drag the rest of the world over the Fiscal Cliff and into recession, and the flight to “safe havens” is understandable.
Yesterday exposed growing fears over the continued policy of the industrialized nations of trying to print their way to prosperity, and the only question seems to be whether fiat currencies will continue to be seen as a safe haven. I’ll be covering some of the factors adding upward pressure to gold later today.