I suspect that there is a significant buyer out there, probably a central bank.
Momentum traders will not want to sell -- if this month's trajectory continues, then gold will be at $568 by year-end and $649 by the end of February.
Silver Surges on exchange traded fund hopes. There is a serious risk that the silver price could ramp up by 25 per cent over the next couple of months, driven by supply concerns.
Its current stratospheric performance is a combination of three factors -- strong fundamentals, a rampant commodities sector, with most base and all precious metals at multi-year or all-time highs, and massive investor interest led by the Japanese.
The recent frothy price action could not be sustained and once the market has completed its current shakeout, we can expect a return to more measured progress in 2006.
If the U.S. dollar happens to weaken then that would be good for gold probably, (although) gold has been dancing to its own tune recently so it doesn't necessarily follow.
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