Gold, silver and base metal prices fell significantly overnight in the US. The fall in base metals was anticipated because the inflationary outlook inevitably was going to result in a tightening in interest rates, crimping global economic activity. The Fed is behind the rest of the world in that respect.Gold and silver fell too, but less significantly, just losing their gains from the past week. I actually expect gold & silver to hold these levels. Gold can be expected to hold around $US875/oz, with some scope for weakness to $850, but thats likely to be temporary. Silver is well supported around $16.80/oz, though its industrial applications might similarly see a fall in this metal back to $15.00/oz, its just I dont see this happening. I think silver's spec appeal will see it hold with gold. During a period of speculative demand, the industrial side of supply/demand loses all significance. So basically I see gold and silver holding these levels.
------------------------------------Andrew Sheldon
www.sheldonthinks.com
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