Gold and silver have been posting solid gains ever since markets opened on Monday. Despite a lack of any real, fresh economic news or data, metals have been seeing consistently positive gains, including the whole of this week. The gains being made by gold and silver are especially impressive when you consider the fact that they are currently competing for investor money with surging US equities. Though the most recent US equity gains are expected to be short-lived, any time precious metals can gain in the face of competing assets is a positive sign going forward.
Despite there being very little economic activity to discuss this week, the US emitted a few reports today, of which had a marginal impact on precious metals spot values.
Safe-Haven Demand on the Rise Despite Rallying Stocks
US stocks have been rallying the last few days, seemingly out of nowhere. Despite stocks having a somewhat hard time over the past few weeks, the past few days have offered a bit of respite. While equities are on the rise this week, many market experts are unconvinced that this rally will be, in any way, sustainable. After performing positively for the past 5 years or so, it seems as though stocks may finally lose their upward trend. Historically, many equity markets in the same position as the United States’ is at present have acted in similar ways; after falling considerably, they regain their form and make impressive gains directly before collapsing for good. The belief that US equities are on their way out is fueling safe-haven demand for gold and silver.
As it stands, gold is up over the $1,300 threshold and has been hovering around 3-month highs for the majority of this week. With few pieces of economic data around to really push gold forward, it is especially impressive that the yellow metal made such significant strides this week. One can only wonder how well precious metals will perform should they be given a healthy batch of bullish economic data.