Gold Still Among Best Performers – ETF Securities

After hitting a 3 1/2 month low overnight, Gold ended the U.S. day session moderately higher Wednesday, on short covering in the futures market and bargain hunting. Kitco’s Spot Gold Price was last quoted at $1161.80 an ounce up $6.90. Silver also managed to rebound after dropping 7% on Tuesday. September Comex silver was last up $0.186 at $15.15 an ounce. 'Gold appears to be caught in a re-acceleration of the deflationary commodity trend at least for the moment,' says Mike McGlone, Research Director for ETF Securities, pointing to the pressure seen in crude oil, copper and iron ore. Relative to most other commodities, gold has been among the best performers, he says. 'This is clearly depicted in the gold/silver ratio, which just made a new high,' he adds. 'It has remained elevated above 72 for the longest period since 2003-2004. It just made a new high and is nearing the 2008 peak near 80 as silver continues to deflate,' he says.