Will 2014 present bullish conditions for Gold/Silver bullion?
*The Wall Street Journal, by Tatyana Shumsky, February 24, 2014
‘Gold futures closed in on a four-month high, while silver grew 1.1%, as geopolitical instability in Ukraine and Thailand reinvigorated investor interest in haven assets.
Gold prices have climbed 11% since the start of the year after a series of unforeseen upheavals in emerging markets prompted some investors to stock up on haven assets. Precious metals like gold and silver are perceived by some traders as a hedge against political and economic instability because they act as currency alternatives without ties to a particular government. This popularity is a shift from last year, when both gold and silver suffered double-digit declines as a brighter outlook on global economic growth lured many investors into riskier sectors like stocks.
On Sunday, the U.S. and European Union coordinated to arrange a financial bailout for the country, inviting Russia to join the effort.
‘That’s exactly the types of discussions that support demand for gold,’ said Dave Meger, director of metals trading with Vision Financial Markets LLC., a futures brokerage in Chicago.
Both gold and silver traded at their highest level since Oct. 31, with gold touching an intraday high of $1,337.10 an ounce while silver traded as high as $22.180.”
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