As the price of gold has once again approached its record highs, silver continues to linger below significant resistance levels. The current recovery attempt observed is not particularly convincing. In contrast, gold is displaying robust strength. This is not entirely unexpected. For further insights, refer to the current commentary, “Gold Price Ahead of a Decisive Trading Week. Barrick Gold Before the Figures.”
Silver’s situation is reminiscent of copper. Copper, too, shows visible efforts to achieve a sustainable recovery, but the results so far are also lacking. However, this offers counter-cyclical investors the opportunity to look for interesting turnaround stocks in the copper sector. Promising candidates can be found in the latest and free PDF report, “After the Crash – 3 Copper Producers for the Comeback.”
Why is gold currently much more robust than silver and copper? The current strength of gold is largely due to geopolitical risks. The saber-rattling and threats currently observed between Iran and Israel are unsettling the financial markets. Once again, gold is in demand as a safe haven.
Regardless of the current geopolitical risks, which are perceived differently by everyone, there are tangible US price data today and tomorrow. Later today (after editorial deadline), the July data for US producer prices is expected. Tomorrow, the much more important data on the development of US consumer prices in July will be released. This is all to be evaluated in the context of the next meeting of the FOMC of the US Federal Reserve on September 17/18.
