Yesterday dealers reported good two-way action in the physical gold market. Weaker dollar and weaker economic indicators were behind the rally in all four metals yesterday. Some dealers I spoke to this morning said, not only did they experience good two-way action yesterday, but they also had a few new inquiries from people who never traded with them before.
Today gold is virtually unchanged after we witnessed an outflow overnight in the gold ETFs. The silver ETF continues to set a new yearly record as inflows in the gray metal continue. Some financial advisors have indicated their clients are more interested in investing in silver than gold. A number of clients have indicated that they believe going forward, silver has better chance of tripling in value in the future where gold would struggle to compete with that scenario.
Some Far East silver traders report seeing China pick up their purchases in silver last two days, which in turn helps silver build a base at the $17.00 level. I believe the rally in silver will lose some steam and test the $17.00 level this week.
PGM traders sharing that they had seen new fund investment yesterday in the PGM arena. Something they haven’t seen in quite a while.
Author Name: Walter Pehowich
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