Surging Gold Demand a “Global Phenomenon” – Chinese Demand For Silver “Voracious”
by Tyler Durden
Surging Gold Demand a “Global Phenomenon” – Chinese Demand for Silver “Voracious”
Israeli comments led to dollar weakness and gold, silver and oil rallying yesterday. The Israeli government described the Iranian warships move into the Suez canal as a “provocation” and hinted at a possible response.
An example, if one was needed, about how precarious the geopolitical situation in the Middle East is and how markets continue to underestimate the risk of military conflict.
Besides the very strong fundamentals, gold is looking better and better technically. After a 4 month period of correction and consolidation gold remains below levels seen last October (see chart below).
Gold bounced off support seen at the 150 day moving average and is now above the 100 day moving average. It is only 3.5% below the nominal record high of $1,423.75/oz seen in early December 2010.