Watch Gold could be followed by Silver to new records Gold News

On Thursday, the Gold worth rose to a new file prime of $2,685 consistent with troy ounce. The information on speculative marketplace positioning confirmed that speculative web lengthy positions in Gold rose to their best possible degree since February 2020 within the remaining reporting week. It would no longer be unexpected if extra traders have jumped at the bandwagon since then. However, this additionally will increase the chance of a correction, Commerzbank’s commodity analyst Carsten Fritsch notes.

Gold climbs to new file highs, Silver follows

“It is difficult to explain the price increase of the last few days with rate cut expectations, as these have not increased further and were even scaled back somewhat yesterday. This is probably why the price has come off its record high meanwhile. The price could also rise because investors are buying Gold in anticipation of a further price increase. In this context, we spoke of a rational bubble a few months ago.”

“The data on speculative market positioning, which will be published by the CFTC this evening after the close of trading, could provide some insight into this. Speculative net long positions in Gold rose to their highest level since February 2020 in the last reporting week. It would not be surprising if more investors have jumped on the bandwagon since then. However, this also increases the risk of a correction if these investors were to exit again.”

“Silver has recently risen in the wake of Gold. Yesterday, it reached $32.7 per troy ounce, its highest level since December 2012. The Gold/silver ratio then fell to 82, its lowest level since mid-July. Silver is likely to have benefited additionally from the extensive stimulus measures in China, which were announced this week and also caused the prices of base metals to rise sharply.”