by Alasdair MacLeod
Precious metals had a strong performance this week, so much so that yesterday gold soared through the $1308 level, long regarded as the technical point which confirms, once breached, that the bear market is over.
Having closed at $1276 last Friday, yesterday gold traded as high as $1314, and silver at $17.84. Then the news that a Labour MP had been shot in her constituency, accompanied by unfounded rumours that the referendum might be postponed, reversed sterling’s downtrend. Equity markets rallied, and precious metal prices dropped, losing all the week’s gains in just a few hours. The turnaround in the gold price was $33, to close down $14 on a volatile day, and silver lost 35 cents to close at $17.22.