Gold saw late retrenchment in Asian markets overnight, dipping as low as $1,715/oz, but has picked up slightly upon the COMEX opening. Early morning trading in New York shows gold hovering around the $1,723 mark, still $7 off yesterday's COMEX close.
Continued strength in the dollar has offset the official news that Europe has entered a double-dip recession. The U.S. first-time unemployment numbers just released show a notable jump due to businesses on the East Coast knocked out by Hurricane Sandy, but this is something that should already have been priced into the market, seeing how it happened on their doorstep.
The retreat of gold from the $1,730/oz mark was spurred by reports that third quarter global gold demand had slipped due to economic slowdown in China, in combination with the continued strength in the dollar. Note however that gold ETFs jumped 56% over last year's Q3 numbers due to inflation concerns over open-ended quantitative easing by multiple countries. While ETFs may be right for some people, I still hold my inherent distrust of arrangements where the physical gold cannot be seen, after my research into allocated gold accounts, and questions over national gold reserves. As always, do your due diligence and decided which path is right for you.