As the Kitco chart shows gold has got off to a good start this morning in the southern hemisphere and is currently trading at $1160.50/oz, up $9.00/oz. Silver is also joining in the fun with a gain of $0.14 to trade at $18.65. With all the chat about a dollar recovery etc, a number of investors may have shorted the precious metals and are now having to run for cover and close their short positions forcing gold prices higher.
If you go to Kitco's home page you can see a breakdown of golds movement, as we write it shows the following:
Gold Price Change due to Weakening of US Dollar $2.10
Gold Price Change due to Predominant Buying $7.70
This is a neat addition to kitco's site as it saves us the bother of looking up the dollars movement and doing a quick bit of mental arithmetic in order to allocate just what is behind golds price rise.
If gold can get some traction here and carry it through to Hong Kong and then on to London we could be in for a very good day, however the action is usually on the New York Stock Exchange with the other Stock Exchanges playing second fiddle as they tend follow rather than lead the gold market.
To see Kitco's site please click here
To see the USD's progress please click here.
Regular readers will know these sites or have their own sources of data collection but some of our newer subscribers are still finding their feet in the precious metals space so please be patient with us if you are already a sophisticated and seasoned investor, thanks.
Have a good one and stay calm.
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