I guess I’d be a little concerned if the gold price wasn’t still up almost 10 percent for the year and if silver wasn’t still up more than double that amount. Nonetheless, profit taking apparently snowballed after Fed Chief Ben Bernanke failed to even mention the idea that the central bank was prepared to print more money for the greater good if the need arose.

Now, clearly, if you were looking to buy precious metals over the last six months or so, the first of the year was the time to do so, but, there seemed to be plenty of buyers stepping in there at the end of the day as the gold price is now back up to $1,705 an ounce. The GLD ETF added 10 tonnes to its holdings this afternoon and China’s central bankers were surely pleased to see today’s developments, probably adding to their stash of gold bars once again when Western traders pushed prices lower.