Gold and silver reached new record all time and 31 year highs again yesterday and this morning – both nominal highs. Silver has surged to a new 31 year nominal high of $40.28/oz and may now target next resistance at $50/oz – the 1980 nominal high.
Gold is now targeting $1,500/oz after just reaching new nominal highs at $1473/oz. Gold is higher in all currencies this week but especially the beleaguered yen which has fallen 4% against gold in the week so far.The gold and silver markets are experiencing a perfect storm due to the heightened level of geopolitical and macroeconomic risk.
Debt concerns in the eurozone and in the US (possible government shutdown), surging oil prices due to geopolitical risk in the Middle East and Africa, deepening inflation and the Black Swan risk of natural disasters (another Japanese earthquake has led to problems at a second nuclear plant - Onagawa) is leading to continued safe haven demand from a minority of astute buyers.These include high net worth individuals, hedge funds, pension funds and central banks.
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