Silver investment looks bullish in 2010
Monday, 4 January 2010
As was to be expected, action in the precious metals markets was rather slow over the holiday week. Gold saw little movement, while silver actually posted a few gains last week as the US dollar weakened.
We can expect trading to remain light through New Year's, however any moves down will be exaggerated as small orders can have a larger than normal affect on prices during periods of thin trading. Analysts are advising investors to wait until after January 4, to make a better assessment of true price action for gold and silver.
On Monday, gold and silver prices actually moved a smidge higher as the greenback slipped. Gold managed to close slightly above $1,100 an ounce and silver closed at $17.41 an ounce.
Tuesday, however, saw a slumping dollar reverse course putting downward pressure on precious metals prices already suffering from end-of-month, -quarter and -year book squaring. Silver just barely hung on to $17 an ounce at closing and gold fell below the psychologically important $1,100 mark.
The dollar continued to post gains against the yen and other major currencies Wednesday sending gold and silver prices to test further lows. Hope of US economic recovery on the horizon is fuelling the greenback's rise and taking steam away from the precious metals rally that saw gold move past $1,200 an ounce and silver push past $19 an ounce earlier this month.
Gold fell as low as $1084.80 and silver followed to $16.71 an ounce in early trading Wednesday to close at $1092.10 an ounce for gold and $16.75 an ounce for silver. --Commodity Online
We can expect trading to remain light through New Year's, however any moves down will be exaggerated as small orders can have a larger than normal affect on prices during periods of thin trading. Analysts are advising investors to wait until after January 4, to make a better assessment of true price action for gold and silver.
On Monday, gold and silver prices actually moved a smidge higher as the greenback slipped. Gold managed to close slightly above $1,100 an ounce and silver closed at $17.41 an ounce.
Tuesday, however, saw a slumping dollar reverse course putting downward pressure on precious metals prices already suffering from end-of-month, -quarter and -year book squaring. Silver just barely hung on to $17 an ounce at closing and gold fell below the psychologically important $1,100 mark.
The dollar continued to post gains against the yen and other major currencies Wednesday sending gold and silver prices to test further lows. Hope of US economic recovery on the horizon is fuelling the greenback's rise and taking steam away from the precious metals rally that saw gold move past $1,200 an ounce and silver push past $19 an ounce earlier this month.
Gold fell as low as $1084.80 and silver followed to $16.71 an ounce in early trading Wednesday to close at $1092.10 an ounce for gold and $16.75 an ounce for silver. --Commodity Online