Gold and silver prices as well as equities and industrial commodities had another strong day yesterday, as traders dashed back into “risk” positions. In America the Dow Jones Industrial Average hit an intraday high of 13,004.97 – its highest level since May 2008. Comex March gold futures settled at $1,757.20/oz, for a gain of 1.85%. As per usual in “risk on” days, silver outperformed gold, with front month futures gaining over 3.5% to settle at $34.43, with copper also recording gains of 3.5%, settling at $3.83 a pound at the Comex. Likewise, crude oil had another strong session, with WTI up 2.5% at over $105 a barrel, and Brent crude now trading north of $121 a barrel.
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Couple this with the fact that the eurozone situation has been stabilised and that the European Central Bank will announce another massive package of bank loans at the end of this month – which some have predicted could be worth as much as one trillion euros – and it’s hard to see why exactly, barring some kind of “black swan” event, the markets should be about to reverse course. After all, the markets love free money.
