Having risen $160 to $1345 some short-term profit taking is only to be expected, and silver followed suit.

The chronological events of 2013 set the background for gold in 2014. It was a momentous year which should ensure a rise in the gold price in 2014.

Whatever analysis of individual countries might tell us, it has been easy to miss the threat of a deepening global recession, a risk increased by diminishing cross-border flows.

More and more technical analysts are coming round to the likelihood that prices are bottoming out and gold may be establishing a new uptrend.

There are very few figures coming out of China that you can rely upon, and this is particularly true of gold imports.

Relationships between precious metals and other markets seem to be changing, with established market trends being broken.

The second tapering reduction, a further $10bn per month, was announced this week. It was we are told by the news channels fully expected.

Thanks to the Fed’s tapering, a wider public is becoming aware of currency instability in diverse economies, from Turkey to Argentina, and India to Indonesia.

By December, the most recent month for which statistics are available, the US dollar Fiat Money Quantity (FMQ) had grown to $12.48 trillion.

The truth has everything to do with different philosophies about gold.

A potentially vicious bear trap is now set in both precious metals on Comex.

It would appear that the support level has moved up $20 from the $1200 level.