Gold & Silver Prices Spike on Dollar Index, Covering

Gold and silver values have risen the last two trading days, with the metals seeing gains of 3.1% and 1.6%, respectively. Although gold and silver are even at the time of this writing (5pm EST) the metals spiked to $1328.90 and $21.98 earlier in the trading day.

The U.S. federal government was shut down for most of the last 3 weeks, much to the chagrin of gold and silver investors. The uncertainty surrounding the budget and debt ceiling put a halt to new money flowing into the gold and silver markets, and with some fearful investors selling their gold and silver for cash the spot prices of these two metals have suffered.

Even though the latest deal brokered in Washington is at a best a temporary fix that will require attention within before the end of the year, having Capitol Hill’s lights back on was enough to motivate investors to buy gold and silver. The unease of industrial America became evident yesterday as silver failed to keep up with gold, and some analysts pointed to the fact that gold is more heavily used in investing than silver as the reason that gold outgained silver almost 3 to 1 this week.

The Dollar Index’s drastic fall Thursday boosted gold and silver prices, and the short covering taking place on the derivatives exchanges also provided some support for gold above $1300 per ounce. With new data emerging next week prices may go either way, so be sure to visit on Monday to find out what’s next for gold and silver investing prices.

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