Silver Soars 4%, Gold Consolidates On Dovish Fed
By: Mark O’Byrne, GoldCore
GoldSeek.com
Friday, 18 March 2016
Silver rose 2% yesterday and has surged 4% this week to over $16 per ounce as the Federal Reserve flip flopped regarding interest rates and lowered its expectations for rate rises this year from four back to two or just one rate rise due to “global risks.”
Gold is flat for the week but has consolidated on the 19% gains year to date and looks well supported especially given the real risk of renewed global and economic financial turmoil. The factors which led to this turmoil remain intact and continue to bubble under the surface, largely unnoticed as similar factors did prior to the financial crisis in 2007/2008.
Increasing questions about the policies of, the credibility of and indeed the wisdom of major central banks such as the BOJ, ECB and the Federal Reserve is supportive of the precious metals.
The Fed signals and ECB actions were even more dovish than expected and confirmed, if any confirmation was necessary, that ultra loose monetary policies are here to stay and may actually deepen.
Gold and silver are benefitting from this as ZIRP (zero interest rate policies) and NIRP (negative interest rates) are of course positive for gold and silver which are not negative yielding.
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