Today’s Gold market has been volatile, as traders seem uncertain about what to do with the metal. According to MarketWatch, June gold deliveries were up on today’s market after seven days of losing value. The futures have been steadily losing value since last year, and have shown even greater losses so far in 2013.

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Gold Was Up On Today’s Market

On today’s market, gold was up 1.3 percent per June ounce to $1,382.10. So far in May, the price of the metal has fallen by about 7 percent. There has been a large increase in the size of shorts on gold, with many investors using the positions as insurance on their long positions. That could lead to a huge increase in volatility in already volatile markets.

Gold is one of the most interesting stories of the 2013. The metal saw the largest two day drop in its value in more than thirty years in April, and many big hedge funds saw their bottom lines hit hard by the change. The metal has long been the darling of those that think Federal Reserve policies will lead to inflation, but that thesis has not yet been borne out by reality.

According to the Wall Street Journal, the market for silver has been even more interesting in the last 24 hours. Silver, according to the paper, fell by as much as 9 percent in overnight trading. Trading had to be halted four times in the first ten minutes of trading this morning because of the flood of sell orders hitting the index.

Silver was trading up as much as 1.8 percent on today’s market according to an article from the WSJ. The metal has become increasingly volatile in recent trading, and its link to gold is not forgotten by the market. The commodities are often seen moving together, because they are used for similar purposes on the markets.

Gold may be about to reverse a seven day losing streak, but it’s unlikely to turn around and replace the value lost in recent months. The United States stock market is performing incredibly well, and Japan’s new fiscal and monetary policy appears to be jump starting the country’s economy. There may be little appetite for gold in the rest of the year.

Along with positive economic indicators, there is of course the fact that the inflation that was promised to up the value of gold has not occurred. The United States seems to be in a deflationary cycle, so gold bulls better watch out.