[Some excerpts from the latest issue of the Weekend Update in the
subscribers section of the website.]
It was an exciting week for precious metals as the gold price rose
sharply and silver surged, all part of broader gains for risk assets that
included a few titillating developments for the monetary metals. The move by
the German central bank to repatriate a large portion of their gold reserves
helped drive the gold price higher and an astounding one-day addition to the
holdings of the iShares
Silver Trust ETF (SLV) bolstered silver.
Demand was strong in Asia as well as in the U.S. where January coin
sales have already set new records. Investors continue to pile into precious
metals amid fresh signs of slowing global economic growth that is being
countered by record central bank money printing.
Gold and silver had their best combined performance in eight weeks, the
gold price rising 1.3 percent, from $1,662.70 an ounce to $1,684.70, and
silver surging 4.8 percent, from $30.44 an ounce to $31.89. After three weeks
of trading in 2013, the gold price is up 0.6 percent, still 12.4 percent
below its high from September 2011, and silver has risen an impressive 5.1
percent so far this year, but it remains down 35.6 percent from its high
almost two years ago.
There is some technical resistance for gold at the $1,700 level and
around $32 for silver, so, these will be key levels to watch in the days
ahead. But, the more important technical consideration for these metals was
the very positive development in trading last week when a sharp sell-off on
Thursday was almost immediately reversed, after which the price of both gold and
silver headed significantly higher.
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