Gold and Silver Price Update. Bullish expectations about gold in the short-run.
Gold prices continued to escalate, following the civil war in Libya, the debt crisis in the European Union regarding Portugal and the aftermath of the earthquake and tsunami in Japan. Collectively, all of these factors are making investors have bullish expectations about gold in the coming days, viewing it as a perfect hedge against rising fuel costs. Inflationary pressure, rising oil prices and a weak outlook for the global economy are the concerns which pushed gold prices to USD $ 1447.82 an ounce yesterday. If the conditions remain the same, then, gold is bound to rise even more.
However, investors in the US are also waiting for the releases of US consumer sentiment and final quarter gross domestic product. If these releases inject optimism in the market, then, investors would be keen to immediately cash in on their investments, which should cause gold prices to decrease.
Cash silver was at USD $ 38.165 an ounce yesterday, its highest level since 1980. Today, it was trading at USD $ 37.4088 an ounce in Singapore.