Is the gold rally just getting started?
Gold price testing support at $2,300 after U.S. economy created 303K jobs in March.That article was accurate for about 30 minutes, and then the price started taking off, with June gold futures eventually touching $2350 an ounce. Bank of America, one of the most bullish banks on gold at the start of the year, reiterated its target of $2,400 an ounce. The analysts noted that the precious metal is less dependent on U.S. interest rates and monetary policy. In this environment, it doesn’t matter if U.S. bond yields go higher or the U.S. dollar strengthens; central banks will continue to buy gold to diversify their foreign reserves into an asset with no third-party geopolitical risks.
Silver has rallied more than 10% this week, seeing its best performance since November. At the same time, the gold-silver ratio has fallen below 85 points, its lowest level so far this year. According to some analysts, anyone who has missed the gold rally should be paying attention to silver right now. Analysts at TD Securities said that they see silver in a long-term uptrend as above-ground stocks will be depleted within two years.
Please read again: Silver“above-ground stocks will be depleted within two years“. Well, when that is going to happen market attention will shift from FED currency policy to the silver depletion, silver prices should go to the moon. 😉
Peter Mennel
Udo Sutterlüty