For the first time in a while I bring news of positive results for both gold and silver. A rise in demand for precious metals across the board is the main culprit behind my metals performed so well, but some weak economic data from around the world helped as well. It seems as though US stock markets have ended their impressive run, but the US dollar still seems to be doing ok. That being said, investors are not too sure how long the dollar is going to be performing so well.
Rising Demand
As if you didn’t see it coming, gold and silver’s massive decline was followed by an increase in demand across the world. The price of gold at the beginning of the week was nearly $200 cheaper than it was only a few weeks ago which means that people have an insatiable appetite for metals. At first, the increase in demand did not translate into a higher spot value for metal, but that has changed.
In addition to the low prices spurring demand and spot values upward, an Asian holiday meant that they would increase even further. Asians are always heavily interested in precious metals which makes it no wonder why they gift gold and silver. Who knows if demand for precious metals will continue to increase.
Gold Becoming a Safe Bet
In economic times that have been as rocky as the times we have witnessed lately have been, there are very few things that have been a sure thing as far as investments go. Many experts believe that gold and silver are becoming more and more stable as investment options. Economies all over the world have been hard to predict and most often disappointing, so investors are not too sure what their next moves should be.
After gold’s fall the other week, it has been on the rise fairly constantly. Many people believe that this rise will be sustained for the time being as gold and silver are becoming increasingly more reliable investments. There was also news of central banks all over the world increasing their gold holdings which only boosts investment confidence further.
The Week Ahead
The main focus of investors everywhere over the course of the next 7 days is the commodities market. Gold and silver, as well as crude oil prices, have been performing well over the past week or so and everyone is wondering if this positive run will continue. It would also be smart to keep an eye on the US economy as it has been doing sub-par as of late.
Weekly Shift
Gold started the week at about $1,409 and ended at $1,463 posting officials gains of over $50. Silver, on the other hand, started the week at $23.38 and ended at $24.10 which was a gain of 72 cents.