Pop in Silver Dragged Gold Higher, Says Saxo Bank

NEW YORK (Scrap Monster) : According to Mr. Ole Hansen, the head of commodity strategy at Saxo Bank, the gain on silver triggered the gearing up of Gold higher. Speaking about the precious metal rally, Mr. Hansen said that the pop in silver helped in dragging gold higher. The Comex March Silver future was found to rise to $ 20.335 an ounce on Wednesday.

The gain on silver according to Saxo Bank offered some momentum to gold as well. Silver that was experiencing a downtrend for recent days broke out from the resistance and this according to Hansen has benefited gold. However, Hansen after examining on the future of gold says that the current trend is not expected to last long as a lot of volume can’t be detected on the move. He concludes that in order to benefit, gold is required to close above $ 1.272.

Courtesy : Kitco News