With the gold price touching $1400 again, if momentum continues we could see gold hit new rcord prices and silver continuing to make further 31-year highs.
Author: Lawrence WilliamsPosted: Monday , 21 Feb 2011 mineweb.com
LONDON -
After the early January sharp setbacks, which had many observers yet again shouting ‘the bubble is bursting', gold and silver have made strong recoveries with the gold price again touching $1400 (at the time of writing) and silver breaching a new 31-year high. Other precious metals have been benefitting too with palladium hitting a new 10-year high and platinum trading up also.
The gold price advance will have been helped by the unrest in Arab states in the Middle East and North Africa which is creating huge uncertainty in the region, as well as creating global nervousness. Certainly gold purchases have been on the increase in the Middle Eastern souks, but it is probably continuing high Asian demand, particularly in India and China which is the true driver of the market at the moment...
The gold silver ratio at the time of writing is 41.95, down from over 60 only a few months ago. This gives a little more credence to those predicting a $50 silver price, although for this observer this would seem unlikely without a further substantial rise in gold (which could be on the cards if momentum picks up further). $1400 gold is a bit of a tester here - if gold can move through this level and stay above it, then a new high in the mid-$1400s may not be too far away.
Read more @ ORIGINAL SOURCE
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