The prices of gold and silver rallied in the past couple of weeks to their highest levels in over a month. Are gold and silver on a verge of comeback? Will their rally continue in the coming months? Let’s analyze the latest news that may affect gold (GLD) and silver (SLV) prices.
Despite the recent rally in the prices of gold and silver, the demand for leading precious metals’ ETF including SPDR Gold and Shares Silver Trust haven’t recovered. During October, the SPDR Gold’s holdings fell by 3%; Shares Silver Trust’s silver holdings fell by approx. 2.5%. The developments in the U.S economy could shed some light on the drop in demand for gold and silver as investments.
FOMC’s monetary policy
The highly anticipated FOMC meeting back in September ended with no change to the Federal Reserve’s policy and it continues to purchase long term securities at a pace of $85 billion a month. But even if the Fed had cut its purchase program, this would have had little adverse effect on the prices of gold and silver.
For the rest of the report you can see it at Seeking Alpha
For further reading see:
- Gold and Silver Outlook for October 2013
- Gold and Silver Weekly Forecast for October 21-25
- Weekly Outlook of Financial Markets for October 21-25
- Will Gold Recover from its Recent Fall?
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