Gold

Gold prices continue to trade under pressure, along with the entire precious metal complex. Initially market sentiment favoring risk on equities moved the metals lower, however as the equities markets turned south precious metals continued to trade to the downside.

Recent action in the precious metals have been interesting and long-term studies suggest that palladium might have further to go before retracing, and that the recent correction in gold might in fact be coming to a quick conclusion.

As Paul Volcker, the federal reserve chairman for eight years, beginning in 1979 used to say, “Bäume wachsen nicht in den Himmel.” This German proverb translates to, “Trees don’t grow to the sky, they never have, and never will.” It suggests that there are natural limits to growth.

Gold futures are trading fractionally higher on the day. As of 4:40 PM Eastern standard time the most active April Comex contract is currently fixed at $1331, which is a net increase of $1.50 (+0.12%) on the day. Spot gold is exhibiting roughly the same net change, and is currently bid at $1328.30.