Gold Prices And Silver Prices Strengthen From Vigorous Physical Demand

Oct. 9, 2011 - PRLog -- Worldwide commodity markets had been battered by unusual volatility past month, driven basically by worsening global macroeconomic environment. Monetary marketplace turmoil and threat aversion was the underlying theme triggered by unresolved European debt crisis. No commodity was spared the ravages of the marketplace as they had been all affected to some degree. Go to http://silver-dollar-values.com for profitable investing ideas.

The feeling has turned highly negative with small prospect of improvement anytime soon. Indeed, in the short-to-medium term, probably the most difficult question is whether or not the globe will witness sub-par growth or severe downturn. Sadly, no one knows; and that is why is it has turn out to be increasingly challenging to forecast commodity prices.

For example, in the present uncertain conditions, gold ought to have gained from its admittedly well-liked safe haven status; but, the precious metal failed to get any increase. If something, it performed the worst, maybe. Nevertheless, such unusual price patterns might not persist for long, based on specialists who assert that if the European debt crisis gets worse, precious metals are certain to gain.

However the scenario might not be as dark and gloomy as some marketplace prices that have overshot to the down side would recommend. For example, some specialists are raising base metals weighting because of enhancing marketplace conditions in China. Gold, as a safe haven asset, didn't benefit from the present turmoil, but going forward it's most likely to. It's one of the very couple of stores of worth accessible at present to investors. Go to http://silver-dollar-values.net for profitable investing ideas.

On the whole, the sentiment is expected to stay fragile and prices choppy. The marketplace is searching for a clear direction. There's a sense that it cannot get worse than this. So, in many instances fundamentals will catch up; and markets that have overshot to the downside due to negative sentiment might start to show signs of improvement. Copper is one such commodity. Leading indicators are being closely watched for telltale signs. So, caution continues to be watchword.

Gold: Precious metals, particularly gold and silver, faced further price pressure early last week; but later normalcy returned with prices gaining support following emergence of physical demand primarily from Asia.

For Friday in London, gold PM Fix was $1,652 an ounce, up from the prior day's $1,635/oz. From $1,655.50/oz on October 3, the weekly low of $1,617/oz was reached on October 5 after which prices improved.

Silver, as usual, tagged on to gold. The metal's Friday AM Fix was at $31.98/oz, up from $31.80/oz the prior day. Opening the week at $31.05/oz on October 3, the lowest price Fix of $28.69/oz was recorded on October 5.

Based on specialists, using the pegging of the Swiss franc, gold was usually expected to benefit as one of the couple of dependable stores of worth left to investors. Nevertheless, it fell more than ten per cent since then and current volatility has prompted some sizeable withdrawals from gold ETPs(Exchange Traded Products).

The consolation obviously will be the support being received from physical demand primarily from Asia. Therefore, prices are most likely to be nicely cushioned amid seasonally powerful demand. Obviously, the large question in everyone's thoughts is how soon or when would investor interest return. The global economic backdrop is clearly in gold's favor.

Silver as well has taken advantage of physical demand in the fairly appealing price levels; but the real marketplace driver nonetheless remains investor demand. The metal's fundamentals are obviously weak as the marketplace is in surplus. So, any upward price movement risks a correction. Go to http://www.silver-dollar-values.com for profitable investing ideas.

Based on technical analysts, in the shirt-term, one ought to look to sell upticks in gold towards 1700 against the 1730 region and look for a move back towards 1580 and ultimately the 1530 lows. Silver's recovery towards the 33.50 range high looks difficult, but the 26.08 lows might be targeted. The medium term prospect is favorable.

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