Gold dipped slightly mid-week during the first week of October, but industry watchers say fear of inflation and geopolitical instability will contribute over the long term to continued momentum for gold. Silver has begun showing strength, also, which according to James Turk, editor of The Freemarket Gold & Money Report, bodes well for the precious metals.
“Gold remains the safer play of the two,” says Turk, “but don’t count silver out. Silver is so much more volatile that it always has the ability to ‘turn-on-a-dime’, and may yet do so. The strength silver showed this past week might be an early indication of more strength to come.”
Gold hit a 17-year high of US$479 per ounce on September 22. According to an Oct. 5 Reuters report, gold has not strictly tracked the dollar’s moves in recent weeks, sometimes ignoring its usual inverse link to the greenback, as factors like inflation and geopolitical worries and technical considerations mostly steered prices higher.
“Gold momentum is up and rising faster,” according to the latest J. Taylor’s Gold & Technology Stock Report. “We have more room to grow and expand in this market. Price broke through $455 and $467 resistance levels and is settling in a new higher base at $472. Price is over all the averages and we’ve made excellent progress this week.”
The mid-week dip was attributed in part to the weeklong holiday in China, the Rosh Hashana holiday, and the start of Ramadan, the month-long Muslin fasting holiday, all which contributed to thin trading, according to Reuters.
Experts like Turk remain bullish on gold, but with the usual caveats. “I’d like to say it’s clear sailing ahead for gold,” said Turk, “but I’ve been around markets long enough to know that anything can happen – in other words, there is no such thing as ‘clear sailing’. The only thing one can do is to take a position when the risk/reward ratio is in their favor, and that continues to be the case for gold.”
“Gold remains the safer play of the two,” says Turk, “but don’t count silver out. Silver is so much more volatile that it always has the ability to ‘turn-on-a-dime’, and may yet do so. The strength silver showed this past week might be an early indication of more strength to come.”
Gold hit a 17-year high of US$479 per ounce on September 22. According to an Oct. 5 Reuters report, gold has not strictly tracked the dollar’s moves in recent weeks, sometimes ignoring its usual inverse link to the greenback, as factors like inflation and geopolitical worries and technical considerations mostly steered prices higher.
“Gold momentum is up and rising faster,” according to the latest J. Taylor’s Gold & Technology Stock Report. “We have more room to grow and expand in this market. Price broke through $455 and $467 resistance levels and is settling in a new higher base at $472. Price is over all the averages and we’ve made excellent progress this week.”
The mid-week dip was attributed in part to the weeklong holiday in China, the Rosh Hashana holiday, and the start of Ramadan, the month-long Muslin fasting holiday, all which contributed to thin trading, according to Reuters.
Experts like Turk remain bullish on gold, but with the usual caveats. “I’d like to say it’s clear sailing ahead for gold,” said Turk, “but I’ve been around markets long enough to know that anything can happen – in other words, there is no such thing as ‘clear sailing’. The only thing one can do is to take a position when the risk/reward ratio is in their favor, and that continues to be the case for gold.”
