Gold rose toward $967.00 earlier in the day with investors buying anything tangible for fear that the medicine the markets need to cure the immediate threat to its heath (massive amounts of liquidity) will kill the patient in the long-term as inflation rebounds once the crisis passes. With interest rates at rock-bottom levels, investors pay little penalty to hold yield-free gold. There is also no counterparty risk like there is with paper instruments.

2-17-gold