Gold’s Decline May Be Temporary as Inflation Fears Persist

Gold’s sharp fall today could be short-lived, as inflation fears are likely to keep offering support in the long run, Spartan’s Peter Cardillo says. Gold falls 2.4%, to $1,752 “on no specific reason other than the fact that the Dollar is higher and yields are firm,” Cardillo says, blaming the move partially on low volumes. “We don’t see this decline as the beginning of a renewed downward trend and see prices bouncing back quickly. In other words, a buying opportunity.” Inflation “and the prospects of geopolitical problems” are likely to bring prices back up, he says.