Yesterday was a sensational day in both the gold and silver markets. Gold finished the trading day up 3.05% after one point trading as low as $1,140. From high to low the gold price swung 5.9% in one trading day its biggest price jump since September 2011.
The price was driven by a combination of heavy short covering and buy stop orders triggered in the futures, and bargain hunters in the cash market.
Silver as normal experienced even more volatility. Silver traded as low at $14.50 per ounce before surging to $16.80 per ounce. That’s an extraordinary 18% intraday move and one of the biggest daily swings on record. Previously major price swings have all been to the downside. From a technical prospective if the silver price can break through resistance at $16.78 it should indicate the start of a new bullish wave.
Gold is currently trading at £761.74 per ounce, silver £10.31 per ounce, platinum £776.48 per ounce and palladium £509.38 per ounce.