16 February 2011
Gold & Silver Bulls Find New Confidence in their Convictions
Gold and Silver sentiment turns higher as interest in precious metals buying resumes
Gold bulls found new confidence in their convictions this week as Gold broke resistance to above £1375. While many media commentators have cited middle east tension as major influence, it seems more likely that this has been merely supportive rather than a specific driver. Far more likely to have lifted bullion from its January depression is the story of Asian demand.
Silver too has risen with gold, this morning back within striking distance of $31 per troy ounce.
What is interesting is all of this has happened in February against the backdrop of a reasonably stable US dollar. From past performance we have seen significant moves in Gold and Silver when they have de coupled from the greenback.
Physical supply remains tight. BullionSupermarket.com has seen some increases in supply in some areas, such as American Silver Eagles. Also seen has been a small down tick in premiums being asked on fixed price gold and silver lots. Gold and silver for auction continues to achieve robust, but lower premiums.
At BullionSupermarket.com improved supply of 1oz Silver Eagle bullion coins continued to depress premiums on smaller auction lots, with a steady stream of completing sales at premiums around 24% just prior to completion.