Auguries—Terminal Velocity May 31, 2012 By Kevin Michael Grace
Gold was up (at press time) $3.10 (+0.2%) for the week to $1,562.50, and silver was down .55 (-1.9%) to $27.71. GoldCore reported, “Gold fell and tested support at $1,530 [Wednesday] but then bounced very sharply and rose by nearly $40… Yesterday may have been a form of ‘tipping point’ for gold whereby it again starts to display its safe haven status as it did soon after the initial price falls at the time of the Lehman financial crisis.”
The search for a safe haven is now something of an obsession as free-falling Europe approaches terminal velocity. Last week, this space announced the failure of the “last hope to save the European Monetary Union as currently constituted.” Foolish certainty. This week, we see the arrival of another last hope, the European Redemption (!) Pact.