Gold Silver Reports (GSR) – Gold inching higher on minor short-covering, bargain hunting and capital flight problems in India — Gold inched back toward the $1300 level in early U.S. trading today – up $2.00 at $1299. Silver is up 17¢ at $16.68. The timing on the upticks, coincident the last few days with the COMEX open, gives the appearance of some minor short-covering, but it remains to be seen if it indicates a more conclusive turn among the big speculators.
Gold could also be attracting some interest from price-conscious bargain hunters. Recent developments in India could also be at play in the gold market. Yesterday, the Royal Bank of India made public its concern about the Fed’s quantitative tightening programming and the stronger dollar. Today it hiked rates to stem capital flows out the country. India’s gold-conscious citizenry is unlikely to take such signals from its central bank lightly – the same mindset that inspires capital flight also inspires gold acquisitions.
