Gold just keeps rising. This week it hit a new record high above $1,260 an ounce. Ongoing jitters over Europe helped underpin prices. In addition, the news that Saudi Arabia's central bank had upwardly revised its estimate of its gold reserves was a reminder that "central banks are keen on the metal after two decades of selling" bullion, says Javier Blas in the FT.
Gold may now be set for a correction, however. Strong recent gains have left it vulnerable to profit-taking. As Dominic Frisby points out in our free daily email, Money Morning, the summer season is traditionally weak for gold. Moreover, gold stocks have been trailing the metal, which often presages a setback.
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