Monday, August 2, 2010

Superior Gold Group - Weakening dollar boosts silver

Some analysts see the price of silver rising, potentially faster than the price of gold. reports that the sinking dollar and technical economic indicators might light a fire under the white metal.

Tuesday, silver rose nearly 2 percent to trade at $18.36 per troy ounce. Gold, on the other hand, was essentially at $1,184.80 per troy ounce.

This week's economic data will be closely watched: Nonfarm payrolls, in particular, will be critically important. Production and corporate profits have gained in the past months, but employment has lagged badly. Payrolls fell for the first time last month, as the U.S. census shed temporary jobs.

That process will continue for the next few months, increasing pressure on the labor markets. Any potential gain in private-sector employment might be swamped by the declining public payroll.

The dollar has been falling of late, slipping against the euro day by day. The European bank stress test, as inadequate as it may have been, helped reassure investors about the future of the euro and put the spotlight back on troubles in the U.S.

Technical analysis by pointed out the close of silver prices above $18 per ounce last week, a psychological support level that could prove key.ADNFCR-2970-ID-19917206-ADNFCR