In the early hours of this morning, gold hit a fresh nine-week high, pushing up above $4,435 per ounce. But it then reversed direction, slipping below $4,400 and coming within easy reach of $4,350 at the start of the European session.
Just under a fortnight ago, gold was trading below $4,000. So, it has added an impressive 10% since then, in a move which has clearly got the gold bulls excited once again, after six solid months of bearishness. Of course, it got quite a boost from the selloff in the US dollar due to the joint intervention of the US and Japan to support the yen.
Source: TN Trader
The question now is if that simply provided the catalyst for the current rally or is a weakening dollar an absolute necessity for gold (and silver) prices to continue their upward move? Either way, both gold and silver look as if they need to correct a touch, or at least consolidate, given how far, and how fast, both have risen.
* The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.
