Gold Flying High, Silver Moving Too

Source:

...it has been interesting to note that in the recent gold price runup silver, which had been being left behind, is itself moving up more strongly again.

...this week the gold price has definitely been moving in the direction the bulls would suggest. Since the jump through $700, the price has moved up fast - to the high $730s at one stage before settling back to remain just above $730 at the end of the week, with a short-lived blip below this level at one time on Friday. The question now is whether it will hold this level, move up again or fall back - the perennial question facing investors!

Barring any specifically gold price depressing news, the likelihood would seem to be for further increases, and given the speed at which gold passed first through the psychological barrier of $700 - and then into 27/28-year high territory, one certainly can't rule out a move to the high $700s - or even to $800 or more by year end. The fundamentals for such a move upwards are convincing...

The dollar is looking weak and therefore gold is looking strong - in US dollar terms at least - as indeed are many other commodities. But gold probably has the edge for the time being. Should dollar weakness ultimately move the US economy towards zero or negative growth, commodity demand will likely weaken - apart from gold which could strengthen further.

In this case too, undoubtedly silver will follow suit, and it has been interesting to note that in the recent gold price runup silver, which had been being left behind, is itself moving up more strongly again.

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