Live Gold and Silver Prices
Live gold and silver prices are indicative of the fact that the bullion market is robust. Gold and silver rose along with the other main commodities, which also includes oil. The currency market rally is also responsible in pushing up the prices of the precious metals. An optimistic outlook for gold is also building up thanks to the strong start of the earnings season in the US.
Reasons for the rally
There is another important reason that explains the rally especially in gold. Latest gold and silver prices have seen a spurt because of a rise in imports from China and Hong Kong. With the Chinese New Year round the corner, the physical demand for gold seems to have gone up as people invest in gold coins and jewellery in China around this time of the year. Official reports show that a record amount of 102.525 tonnes of gold has entered China from November onwards.
Daily gold and silver prices have been on the rise for the last week or so. Earlier this week the yellow metal crossed its 200 day average. The winning streak is also due to a strong Euro that seems to be propping up the bullion market as of now. In fact a weaker dollar and stronger gold is expected to rule the roost for most part of 2012 according to bullion market experts.
Looking at ECB’s decision
Today’s gold and silver prices rose again even though there was a fall in the prices of other commodities such as oil. There was also further depreciation of the both the Euro and the dollar of Australia against the US dollar. Live gold and silver prices are also reflecting the undercurrent of apprehension in the bullion market ahead of the ECB policy announcement that will also give a direction about the rate cuts. The ECB President is expected to announce ECB’s interest rate for the month of January as well as a possible quantitative easing plan as was announced in the US. If the ECB does decide to cut the interest rate it will have a bearing on the currency market and as a consequence have an impact on current prices of gold and silver.
Live gold and silver prices rose marginally in the last trading session by 0.50 per cent. The latest price of gold per ounce is $1639.6. Silver prices also rose marginally to end the latest trading session at $29.89. In the month of January alone the gold and silver live prices have risen by over 4 per cent and 7 per cent respectively. During the month of January the ratio of gold and silver prices decreased by a little over 2 per cent, as the white metal silver outperformed gold. Current gold and silver prices are likely to continue with their winning streak as long as the Canadian and Australian dollar continues its appreciation against its US counterpart. The other reason why gold and silver prices could appreciate is because there has been a decline in the long term bonds of US, which makes the bullion markets a preferred asset class.