Gold and silver are recovering well as investors return to bullion
Buyers are slowly returned to the bullion market, taking advantage of lower prices after Wednesday’s pullback. U.S. Federal Reserve Chairman Ben Bernanke's lack of a reference to further quantitative easing at congressional testimony on Wednesday sparked a heavy sell-off in bullion, sending the metal to a one-month low short of $1,700.
Gold's fall to the lower end of its previous range showed the lack of conviction required to push prices above $1,800 or higher, but analysts and traders saw Wednesday's plunge as a healthy correction rather than the end of the bull run."The broader macro backdrop remains gold-favourable, given the negative interest rate environment, longer-term inflationary concerns and lingering sovereign debt uncertainties," Barclays Capital said in a research note.
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