Gold, silver, and platinum all recorded gains for the week as stock markets rallied on a steady stream of positive earnings and optimism about the economy. Silver led the pack with a gain of 4.71%, erasing some of the losses from recent weeks. Gold and platinum notched small gains of 1.49% and 1.80% respectively.
Gold rests near a six week high with a closing price of $951.60. Gold’s strength in the face of rallying equities markets is surprising to some. As investors seek more exposure to rallying stocks, they may abandon or reduce gold positions taken as a safe haven trade.
At the same time, there are still plenty of factors which should support the price of gold. Commodities have rallied along with world stock market, carrying gold and other metals. The recent dollar weakness continues supporting the price of gold as a weak dollar play. Many investors have also not ruled out the prospect of future inflation as a byproduct of the unprecedented actions taken by world governments to save the financial system and continue to hold gold as an inflation hedge.
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