RSS FeedRSS

Analysts Still Optimistic about Gold and Silver

March 10, 2010 – Although both gold and silver fell in today’s trading, analysts are still optimistic about the long-term prospects of both metals. Gold dropped $14.00 to $1,109.20 while silver lost 26 cents to close at $17.03. Analysts were encouraged that both held above psychological points at $1,100 and $17.00, respectively.

"Initial buying interest has boosted gold," says James Moore, analyst at The Bullion Desk. "We expect investment demand to provide scaled-down support."

Gold and silver both have positive news working in their favor. Gold’s upside came in reports that Chinese imports rose by 44.7 percent; analysts see rising consumer demand as a possible boon for gold investment and jewelry. Analysts also see silver gaining on the residual strength in platinum group metals prices this week, suggesting that sentiment toward industrial and precious metals markets is strengthening for silver as well.

Analysts are still favorable on both gold and silver."Technically gold still looks healthy," says one Hong Kong dealer in a note today, predicting that the Dollar gold price will "re-attempt to break above last week’s high at $1145." Jeffrey Christian, Managing Director of CPM Group remains bullish on silver with a $20 to $22 an ounce forecast over the first four months of 2010 with an average price of $17 to $18 for the year.

Casimir Capital research director Wayne Atwell is forecasting strong gold and silver markets over the next decade, but advises that investors should still expect some "speed bumps" along the way.

Shannon King

Senior Staff Writer – GoldSilver.org

GS social media share img

Get Your Complementary Award Winning Guides Below

 Publish Real Money Magazine

 Publish Gold Investment Magazine

 Publish IRA 401K Kit Magazine

 Real Money Magazine