The ‘Sneaky Bid’ in Gold and Silver
By: Technical buying, and a "risk on" day in stocks and the euro, helped push gold and silver higher Friday.
Gold was up more than 2.2 percent for the week, as the dollar wobbled against the euro. The euro, at a three week high, was up 1.8 percent for the week against the greenback.
Also in the background is an improving view of China's economy. Chinese manufacturing data Thursday showed expansion for the first time in 13 months.
The HSBC preliminary Chinese purchasing managers' index for November was at 50.4, up from October's 49.5.
Earlier Friday, German business confidence was reported to be improving, after six months of declines.
Barclays global head of technical strategy Jordan Kotick said Wednesday afternoon that he's been watching a "sneaky bid" in gold and silver.
Silver broke out, taking out $32-$33. "That's bullish. This adds to the improving backdrop. The same is true for gold at $1740-$1750," per ounce, he said.
Gold pushed through those levels Friday and closed at $1751.30 per ounce, and silver finished at $34.11 per ounce, five percent higher on the week. Gold was at its best level since Oct. 17, and silver was the highest since Oct. 5.
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