Gold slides and rebounds as Hungary reserve increase hits the headlines

Gold closed in the US last night at $2,694.25. That was the highest daily close for the metal in over a month, since November 7. The initial Asian moves saw it rise to a high at $2,704.32. However, it then took an almost $30 hit, sliding to a session low at $2,675.69. One assumes that was on profit-taking ahead of the US CPI release later today? It is hard to find any other reason yet for the sudden relapse. The interesting news today comes amid reports that Hungary of all places has apparently increased their gold reserves by more than 15 tons this year, from 94.5 to 110. Look back 10 years ago and Hungary held less than 3 tons of the metal. The price action in Gold  has been sporadic at times and spreads have widened at some venues. The exact reason for that is not clear, but in any event it looks like liquidity in the metal is poor this morning. So, please be aware of that if you are involved. Gold has now rebounded and it is currently trading $2,696.40