Gold marched slowly upward today, gaining 0.33% on the day. It’s closing in on the prices we saw early last week, when gold topped $1900 an ounce.
Publication of minutes from the Federal Open Market Committee’s meeting earlier this month could have reinvigorated the commodity/currency. The minutes showed that some committee members are pondering more drastic measures to foster QE3, particularly measures that would deflate the dollar.
But maybe even more important to gold’s sudden fall last week was an increase in the margin requirements to trade gold. The CME raised the requirement from $5,500 to $7,000 in a move that took effect last Thursday. (Thanks to Professor Mustafa Younis of Jackson State University for pointing this out.)
Take a look at gold’s value since last week.