Gold : Buy at Dips the Call

Spot gold holds at $626.50/oz, up from an earlier low of $621.20.
The precious metal will be driven by overall dollar direction, but for now seems to be a buy on dips

The earlier sell off in gold and silver in January led to profit-taking in both metals ETFs, with one day liquidations at times beefy.

Although we consider investors in precious metals ETFs to be 'stickier', i.e. mostly long term investors who 'buy and hold', there is some evidence of faster money at work.

Recent reductions are unlikely to reflect real change in behavior and demand for gold and silver ETFs should again be seen.