For the first time in a few weeks gold and silver both ended on Friday in a better position than where they had started on Monday. Low prices have driven demand to the point where it has no choice but to propel gold and silver forward. Additionally, there is rumblings about a US Dollar that may be weakening in the near future which is always good news for those interested in precious metals.
Demand Rising Steadily
As soon as this week started things were looking up for gold and by the end of the week gains were over $50. Like we have been saying lately, the fall in the value of precious metals has finally turned into big gains as demand has increased all over the world.
An upcoming holiday in Asia has helped increase the already rising demand as Asians are well-known for gifting precious metals. While prices have risen this week, there is still room for additional improvement and many people will not be happy until values increase further. If you recall, before gold’s massive collapse, it was trading on the open market for nearly $1,600 per ounce.
National Holdings Increasing
A report released this week showed that many countries throughout the world have seen their Central Bank gold holdings increase significantly. Two of the most notable countries who have seen their Central Banks increase their holdings are Turkey and Russia. While the average investor is uncertain about the future for gold and silver’s value, it seems many national governments are making it obvious how they feel about the metal.
People are going to take this news of central bank purchasing to heart as a sign that confidence can be put in metals. Due to constantly fluctuating economic situations all over the world, there has been little solid confidence in any investment. While the US stock market and the USD had a good run of form for a while, that ended just as quickly as it had started.
As we move onto next week all eyes will be fixated on the metals market as it will be interesting to see if gold and silver can build on this positive week. Europe will also be a key place to watch as it has notoriously spitting out dismal economic performance after dismal economic performance.
Gold started out the week at $1,409, and after a great 5 days it sat at $1,462. These were gains of about $53. Silver did similarly well, starting the week at $23.38 and ended at $24.10. These are gains of about 72 cents.