As can be seen in our headline chart, gold and silver powered ahead further this week, and appeared to be undergoing a rerating. Gold this morning in early European trade was trading at $1354, up from $1320.80 at last Friday’s close. Gold is now up 17.5% on the year so far. Silver this morning is trading at $18.16, up from $17.73 last Friday, and is up 14% on the year. Silver still has some catching up to do, and appears cheap relative to gold.
Continuing weakness in the dollar, notably against the euro, is being reflected in higher prices for precious metals. At the same time, commodity prices are rising, led by demand from China. China is offsetting some of the higher dollar prices for raw materials by allowing the yuan to rise against the dollar, which is up 8% this year.
This post was published at GoldMoney on September 08, 2017.
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