2011-11-25

Gold has been propped up by physical demand

Worse-than-expected data flow on Eurozone economic activity and a disappointing German bond auction, saw the dollar maintain a strengthening trend for most of yesterday. For most of the day, precious metals in turn were weighed down by the stronger dollar, with gold and silver finally managing to make modest gains during US trading hours, and overnight in Asia.

For the most part, gold has been propped up by physical demand, as buyers see current prices as particularly lucrative, while silver has been riding on gold’s coat tails. However, the extent of physical demand we are seeing has not been substantial enough to push gold significantly. For any significant move upward in precious metals, we’d need to see the dollar weaken.

Given that European equities appear to be staging a bit of a recovery today, perhaps we will see downward pressure on the euro ease further, which could open the way for more upside in precious metals, and commodities in general.

0 comments:

Related Posts Plugin for WordPress, Blogger...

KLSE Info Zone

About This Blog

Malaysia Gold Investment

I found Gold Investment in Malaysia is a vary good tools to make profit when the market is down. I also found that Gold Price go up and down more slower compare to share market so to make money in long term, Gold is the right tools. This blog is all about Malaysia Gold Info and the way to make profi

Blog Malaysia

BlogMalaysia.com

  © Free Blogger Templates 'Greenery' by Ourblogtemplates.com 2008

Back to TOP