by Jan Skoyles, TheRealAsset.co.uk
Gold had a strong week last week, up by over 5%, its biggest weekly advance in nearly 2 years. This was despite the gold price falling back slightly on Friday. Silver gained 5.8%, its biggest weekly increase since September last year.
Both the gold price and price of silver have rallied this morning on the back of China data. Gold has recovered most of the losses made on June 19th when Bernanke said the Fed may slowdown bond buying by the end of the year.
Many analysts expect to see a slight pullback in gold, after such a stellar performance last week.
Hedge funds raised bets on a higher gold price last week thanks to Bernanke’s comments in the FOMC minutes. Whilst data from China (see below) is a key factor in the gold price performance, the economy is not expected to grow at the phenomenal rate seen in previous years, therefore Bernanke’s words are likely to carry more weight.
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