Gold, silver see mild profit taking

NEW YORK (February 19) Gold and silver prices are weaker in midday U.S. trading Wednesday. Routine profit taking and chart consolidation are featured from the shorter-term traders after recent price gains. However, safe-haven demand and bullish charts are keeping a solid floor under gold and silver prices at present. April gold was last down $1.60 at $2,947.80. March silver prices were last down $0.278 at $33.10.

This week there is increased speculation the U.S. might revalue its gold reserves from the current $42 an ounce (last valued in 1973), to today’s spot gold price. Broker SP Angel reports, “There is suggestion of this enabling the U.S. Treasury’s ability to borrow under the debt ceiling, pushing the ‘Xdate’ of debt renegotiation back.” Meantime reports say Elon Musk is calling for an audit into the Fort Knox gold reserves, currently stated at 4,580 tons. “Increased awareness of the potential value of gold is likely supporting inflows to the metal. ETF inflows are ticking up as gold continues to gain traction with retail investors,” said SP Angel.

The U.S. data point of the day is the minutes from the latest FOMC meeting, released in early afternoon.

The key outside markets today see the U.S. dollar index modestly higher. Nymex crude oil futures prices are firmer and trading around $72.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.5%.

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