Gold is the ultimate safe haven asset and investors turn to the commodity as a form of money that retains some value as paper currencies struggle. The U.S. dollar was also receiving a safe haven bid from investors. The yield on the 10-year Treasury note was at 3.11%, slightly higher from their recent lows, but still indicating that investors are more than willing to lend money to the U.S. at a low price.
Some potential risks for gold in the short-term are profit taking and investors' need for cash. With gold popping almost 12% this year, investors could sell some of their positions to make money off one of the only assets to yield a positive return. In addition, if the stock markets get much worse and traders take a big hit in equities, they might be forced to sell some gold to fund these losses.
Silver prices settled much higher at 37 cents to $19.11 while copper ended up 9 cents at $3.09.
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