Gold & Silver News Feb 24th

Here are the world’s top stories on the outlook for Gold and Silver prices and related economic indicators for this week.



Gold Continues its Rally for the Third Straight Week

Bloomberg News points out that gold prices have risen by 10% so far in 2014, and the rally continues this week as investors seek safe haven from the slumping home prices announced on February 21 by the National Association of Realtors. The Wall Street Journal is exuberant in noting an important milestone for the precious metal on February 18; on that day, gold futures jumped back above the 200-day moving average – ending a period of over one year during which gold futures traded below that average.

  • QE (Quantitative Easing)

On Wealth Daily, Geoffrey Pike presents some interesting speculation on what the government’s agenda might be as it continues with the third round of quantitative easing (started in September 2012). He points out that the Fed is still buying bad assets – and inflating the money supply in the process – although the rate has tapered down in 2014.

  • Global Politics

Violence in Ukraine has contributed to the recent steady rise in gold prices. Gary Dugan, chief investment officer for Asia and the Middle East at Coutts, reminds investors that “Problems in individual countries can trigger fresh demand for gold.” Also, on Thursday February 20, Switzerland reported that during January they shipped 85 tons of gold to Hong Kong, an amount that represents almost half their entire export quantity. The analysts at Commerzbank who reported this added that the gold was likely headed to China, demonstrating that country’s continuing high demand.

  • Federal Reserve

Bullion prices fell during Tuesday and Wednesday sessions, due to worry that more stimulus cuts from the Fed will erode demand for gold as a hedge against inflation.

  • Stock & Bond Market Activity

In USA Gold, Peter Grant writes that individual investors would be well-advised to ensure they’re not over-allocated to equities, since the stock market is less than stable right now due to the Feds’ artificial suppression of interest rates. SPDR Gold Trust, the largest gold-backed ETF, rose 0.4% this week, exactly matching the gain in April’s gold futures.

  • Gold & Silver Markets

According to MarketWatch , on Friday February 21, gold futures for April closed higher on Comex, at $1323.60 an ounce. This price is 0.4% higher than last week, and represents the third week in a row of gains. Silver futures for March gained 1.7% this week, closing at $21.78 an ounce.

  • Opinion and commentary

Mike Maloney explains on this two-minute video why silver has a stronger potential than gold, because its value is out of proportion in relation to gold. This disproportionate relationship is due to the fact that less silver is available, and Maloney shows why he expects silver to continue outperforming gold in coming seasons. Eric King of King World News interviews Chris Powell of the Gold Anti-Trust Action Committee on possible price suppression of gold last April through collusion between Henry Kissinger, Henry Paulson and the Chinese government.