Gold Continues to Shine

This week the Gold and Silver markets have been on a “Bullish Tirade” fueled by many economic factors. On Tuesday U.S retail sales revealed producers surged higher than expected indicating business was improving. Federal Reserve Chairman Ben Bernanke was quoted as saying “Even though from a technical perspective the recession is very likely over at this point, it’s still going to feel like a very weak economy for some time”
New jobless claims dropped unexpectedly last week. The number of new filings for laid-off workers seeking unemployment benefits fell to its lowest level since July.
This is certainly an indication that job cuts are slowing. The actual number released was 545,000. The Commerce department announced that housing starts And permits reached a 9 month high. The Governments $8,000 tax credit (for first time buyer) and Low Mortgages were cited as significant housing sector support.
However the most significant reason for this current rally in the precious metals has been from speculators and technical analysis.Obviously the current U.S Dollar
“WEAKNESS ‘is a constant driver to fuel the rally. Especially when the Dollar Index value against six other major currencies and at its lowest level in over a year. With the U. S dollar under constant attack it reminds me Of “SHARKS to BLOOD” any crack in the dollars façade Sending investors to the precious metals/GOLD & SILVER.
As of this writing (9/17/09)…Gold has a $1013.50 value (per oz.) while Silver has settled at $17.34(per oz) at these levels many traders are feeling a bit reluctant to buy Gold and Silver. Consumption of both these metals are being strongly encouraged
By the Chinese Government to their citizens. The Government of China is warning its citizens to own “TANGIBLE ASSETS” or “HARD MONEY “in anticipation of pending inflation. In other words “BUY GOLD OR SILVER”.
We are still in the heart of India Festival and Wedding season and the anticipation of a last minute buying surge by India’s Jewelers who are the largest consumers of Gold in the world will inject some new fuel into both the Gold and Silver markets.
The recent rally in the Crude oil and decline in Government Bonds also are guiding professional and rookie investors alike toward (INFLATIONARY TESTED) precious metals. Silver certainly is the better priced and quite frankly may have more upside appeal due to its duo status as a precious metal and it’s usefulness as an industrial metal.
Mike Daly /Gold Specialist

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