Precious metals begin the “unofficial” start to 2015 on a positive note as the recent trend of buying in Asia was seen again yesterday and so far the Asian rally has not been sold which is a bit of a change. Despite a sharp move up in the USD and another big drop in crude oil, precious metals are holding up as physical demand and a bit of “safe haven” buying fuels today’s rally.
On the positive side we have falling interest rates but most importantly at least for now is a continuation of the unraveling of Greece’s political infrastructure which several commentators are suggesting could end with Greece leaving the EU.
This morning also brings us a sharp sell-off in equities which should mean nervous investors and portfolio managers are likely looking at gold and company as they diversify their holdings to begin the new year. Gold and silver are both trading above their 50-day moving averages on the back of this morning’s rally, but in order for this move not to be viewed as a probe of the upper end of the recent trading range, we need both to convincingly break above $1,225.00 and $16.50.
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