And, when gold surges sharply on a safe-haven bid, silver tends to follow.
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For now, gold is not getting a boost from a safe-haven bid with many investors turning instead to U.S. Treasuries.
If those news reports prove correct, it would take a bit of the safe-haven bid out of the gold market.
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That caused equities to sell off sharply again this week and gave a boost to gold in a safe-haven bid.
If so, at some point a safe-haven bid could emerge in gold.
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Woolfolk agrees that once the risk aversion and safe-haven bid dissipate from the U.S. dollar then a bevy of negative factors will take hold of the greenback.
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Gold already was firmer for much of the day due to a continuing safe-haven bid tied to long-running concerns about European debt contagion, particularly as Italy becomes a focus, analysts said.
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Investors flocked to gold in a safe-haven bid overnight on news that Cyprus and its international lenders agreed on a proposal to impose a levy on bank depositors to help pay for the government bailout.
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The deal between Cyprus and its creditors dampened market speculation that the country could be the first to exit the Euro Zone, which triggered a mild unwind of some of the recent safe-haven bid seen into gold prices.
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The precious yellow metal bulls are right back in business as strong safe-haven demand and panic short covering put a strong bid into prices Friday.
So when people are afraid, they bid up the price of investments that are perceived to be safe.
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