No sooner was I feeling silly for having bought gold at all time highs two weeks ago than gold went nuts again today, spiking 3% to new highs above $1080.
One possible spark for the oro en fuego: news that India's central bank is stocking up on gold:
India, the world’s biggest gold consumer, bought 200 tons from the International Monetary Fund for $6.7 billion as central banks show increased interest in diversifying their holdings to protect against a slumping dollar.
The transaction, equivalent to 8 percent of world annual mine production, was the IMF’s first such sale in nine years and propels India to the ninth-biggest government owner globally, according to figures from London-based research company GFMS Ltd. The country previously held 358 tons, the data show. The news was a “surprise because everybody was talking about China being the buyer,” said James Moore, an analyst at TheBullionDesk.com.
“The fall in the U.S. dollar seems to be pushing all the central banks to strengthen their portfolio with gold,” said N.R. Bhanumurthy, professor at the National Institute of Public Finance and Policy in New Delhi. “Gold is a safe store of value compared to the U.S. dollar.”
Jr. Deputy Accountant has much more, including suspicious gold futures activity at Comex that hints at a short squeeze.