Gold Climbs as the U.S. Dollar Weakens and Inflation Rises

Gold rose to a 3 week high on Tuesday as the U.S. dollar showed signs of weakening ahead of the release of Federal Reserve comments and last week’s rise in U.S. jobless claims was higher than expected. The gold price climbed to over $1200 in after hours trading as shorts were forced to cover and value traders stepped in to take advantage of the suppressed gold prices. Silver climbed significantly as well and is trading at $16.30 an ounce as of this writing.
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From a technical perspective, traders are looking for gold to cross over $1205 an ounce this week for a short term rally to be confirmed.   They also look for gold to hit $1225 an ounce for an even stronger confirmation of a late year rally.

Traders and investors who buy silver coins and bullion are expecting the precious metal to hit $16.50 an ounce for signs of a further rally. That price point is both technically and psychologically important for silver, which is prone to violent moves to the upside. Investors have been piling in to silver coins and bullion in recent weeks to take advantage of the bargain pricing, to the extent that the U.S. Mint recently ran out of American Eagle silver coins for delivery.

The stage is set for a year ending rally in gold and silver as gold tries to break through $1200 an ounce and silver marches toward $16.50. Any further weakness in the U.S. job market or signs of inflation should add fuel to the fire as buyers of precious metals stock up and add to existing positions.

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2016-10-31T12:19:58-04:00By |Categories: Gold News, Invest in Gold|

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President and CEO of National Coin Broker
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