3:08 PM
Nifty Tips
Gold and silver eked out further marginal gains yesterday to close at $1294.30/oz and $21.17/oz. Both have risen again in Asian and European trading with continuing nervousness about the robustness of the economic recovery and loose monetary policies leading to continuing demand.
Gold is teasing market participants by hovering just below the psychological $1,300/oz level. Reaching $1,300/oz seems inevitable and market participants are now looking to $1,400/oz, however a correction might come about after the headline 1,300/oz number is reached.
Gold is currently trading at $1,299.07/oz, €968.52/oz, £826.89/oz.
Silver looks set to record its seventh quarterly advance which would be its best performance since 1974. Technical traders and fundamentals investors are now looking at "poor man's gold" and scent an opportunity. Silver, unlike gold and most other commodities, remains well below its record (nominal) high of $50.35/oz.
Suspicion that Japan may have intervened in the currency markets selling yen again, shows that many nations are seeking to weaken their currencies. They are engaged in classic "beggar thy neighbor" monetary policies. In an environment of continuing cheap money policies and increasing hints of competitive currency devaluations, all fiat currencies will likely continue to come under pressure versus gold in the coming months.
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