February Sees Gold Up 6%, Silver Up 19% on Inflation and Escalating Geopolitical Risk
February 28, 2011 by goldguru · Leave a Comment
Mark O’Byrne submits:
The paper-driven sell off in the gold market seen in January has been trumped by continuing robust physical demand in January and February. This has resulted in gold rising nearly 6% in February and silver’s strong industrial and investment demand leading to a 19% rise to new nominal 30-year highs.
Gold in USD – 6-Month (Daily) and 150-Day Moving Average
click to enlarge
Political, and more importantly socioeconomic, revolutions in the Middle East and North Africa are leading to a degree of geopolitical instability and risk not seen in many years. This is leading to concerns about oil supplies from the region and hence the 14% jump in US crude oil just last week and deepening inflation concerns.
Hopes that the feudal Saudi regime will contain the situation by increasing production and exporting more oil are misplaced as the Saudis are already producing oil at maximum capacity and indeed are
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