Silver looks more bullish than gold in near term: Deutsche Bank
30 January 2012
Silver prices could outperform Gold in the near-term but in longer-term the persistence of negative real interest rates will sustain the appeal of holding precious metals, said Deutsche Bank in a research note. Fed announcement resulted in a strong positive move in the silver price.
According to Deutsche Bank, precious metals advanced as the Fed statement led to a weak USD against the Euro. Bank believes that renewed USD weakness could be exacerbated near-term by an unwinding of Euro-short positions and this, in addition to a moderation in deflationary or growth fears, could underpin a further rise in gold prices.