George Soros: Gold No Longer a Safe Haven, But Central Banks Will Support Prices
On Monday, gold (NYSEARCA:GLD) futures for June delivery, the most active contract, dipped $3.40 to close at $1,572.50 per ounce, while silver (NYSEARCA:SLV) futures for May edged 8 cents lower to finish at $27.14.
Both precious metals remain in consolidation mode as the U.S. dollar index, which compares the greenback against six other fiat currencies, remains strong this year. In fact, the U.S. dollar climbed to nearly 100 yen on Monday, the lowest level for the yen when compared to the dollar in about four years. Meanwhile, the Dow Jones Industrial Average (NYSEARCA:DIA) managed to climb 48 points higher.
Last week, the Bank of Japan announced yet another round of monetary stimulus to fight deflation. The central bank’s new governor Haruhiko Kuroda committed to nearly doubling Japan’s monetary base to 270 trillion yen by the end of 2014. It also set a goal of 2 percent inflation by the end of 2014.
George Soros weighs in…