The Market Gage – New Year / Same Volatility

As the selling began to dry up at lower levels, physical demand picked up which eventually brought us short covering and a significant rally.

Our markets opened quietly yesterday, but within a few hours, physical demand in Asia, new longs entering the market and short covering gave us another sharp rally as gold took a run at $1,230.00 before falling just short and silver traded up to $20.45.

January is historically a good month for precious metals and with the expectation that many index funds and balanced portfolios will need to buy gold and silver early this year as they rebalance, I expect this January to continue that pattern.

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