Can Gold and Silver Climb Back to Record Highs?
QE3 stimulus has helped create a buoyancy in gold and silver futures as precious metals continue to be favoured by investors at times of inflation. On Monday trading, US gold futures October has gained 0.25% at 1774.45 ounce while Silver has risen to 0.04% to $34.67 per ounce.
Some analysts had earlier expect gold to climb back to record highs of $2000 by end 2012 while silver could gain from both industrial and investment demand. Weakness in dollar index is also supportive of the yellow metal.
In Indian markets, festival demand has not spurred buying due to record high prices of Rs 32,900 that prevailed last week. But prices fell sharply to Rs 32,500 per 10 gram as stockists booked profits, traders said. Sileve witnessed decreased offtake on weaker demand from industrial units and coin makers.
A weak Rupee will continue to impact prices of imported gold in the country and hence will adversely impact demand, traders said.
Large funds have increased their net long positions in Copper, Gold and silver in the week ending September 11, according to US Commodity Futures Trading Commission (CFTC) data.