Gold futures were off 2.3% on Friday and silver doubled that decline, with both hitting four-year lows on the day and having their worst week since April 2013. “Japan basically pushed gold over the edge as it triggered a major risk-on move,” according to a Saxo Bank commodity strategist, citing Japanese stimulus, the Fed ending QE and dollar strength as being “more than the market could cope with this week.”
“The main reason for gold’s fall is the strength in the dollar after the BOJ’s desperate efforts to weaken the yen,” said the head of one asset management firm, and while predicting that “Gold could fall further in the short term as the dollar could rise,” he also thinks “gold should eventually benefit as a hedge against the uncertainties and economic turmoil brought by central-bank actions.”
While in the realm of the coins, Silver Eagles had their best month of the year in October, and with sales of some 38 million this year, they’re only about one million behind the pace of 2013′s record-setting year.
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