There can be little doubt that gold has turned a corner. Markets now see risk in the dollar, whereas as recently as last month it was everyone’s safe haven. This dramatic change in sentiment has seen gold rise to positive territory for the year and oversold silver rushing to catch up. So far, the buying appears to be a western phenomenon without Chinese involvement.
Since mid-July gold has risen over $600 to $4590 this morning and silver from under $55 to $69.70. That’s up 16% and 27% respectively in a month. And technical analysts will be turning positive because the gold chart is now in bullish sequence with the price, 55-day moving average, and 12-month MA all rising. The trend is our friend, as they say.
So, why the turnaround?
