Gold and silver bullish

There’s growing appreciation that the gold and silver bull has returned, though the reasons justifying it may not be apparent. But this week’s price action is an important turning point.

There are important factors in the background driving the relationship between monetary metals, the dollar, and the other major G7 currencies. These include geopolitics: this week saw plans advancing for a non-dollar (and G7) currency area incorporating the Shanghai Cooperation Organisation, BRICS, and those nations in the queue to join, representing 70% of the world’s population. Additionally, there is a developing G7 bond crisis as the debt bubble hits the buffers. And technical analysis tells us that gold and silver prices are going potentially far higher.

Gold and silver appear to be front-running major changes in the relationship between G7 currencies and the consequences of these tectonic shifts. It is in this context that this week’s performance should be read.