Gold prices are remaining high as continued uncertainty around the US debt crisis continues to trouble markets. This is more a reflection of the US Dollar loosing value against other currencies, including the AUD and NZD. The recent rises in spot prices have caught many by surprise, however remain highly volatile as markets trade on sentiment awaiting firm news.
Some market commentators have been suggesting that gold will give back it’s recent gains once the debt issue in the US has been resolved, albeit possibly only temporarily. More debt and more money printing has been considered bullish for gold and silver prices, however nothing is guaranteed and markets can move quickly.
This has been even more notable with silver prices, as it’s hybrid precious metal and industrial nature leads to connections between gold and other metals. Silver prices were driven higher by speculative investment demand through March and May of this year, only to be severely hit when the COMEX increased margin requirements. It’s price and ratio have stabilized more so now and will be likely respond to any strength in the US Dollar and markets.
The timing for selling gold and silver is a personal choice. Even as gold buyers we find it close to impossible to predict the changes in prices – so if you want to sell, SELL, if you don’t then HOLD. Either way, you know who to call when you decide – Gold Smart!