Some things continue to shine despite the drop in dollar price. Gold and silver, the two heavily traded and most reliable commodities rose by an impressive 5% in response to the dip in dollar price. Many trade analysts are of the opinion that Gold and silver prices are yet to reach its peak. If one checks the trend in silver price over the last few months, it is evident that silver has been volatile. However the overall trend has been on an upside. Many traders are of the opinion that silver being a rare but important metal, price are likely to soar.
Moreover euro strengthening and dollar weakening had a positive impact on the commodities and precious metal market. Thanks to the positive Euro data being released, many believe that Euro is fast recovering from the shadow of recession. However, many traders are still skeptic about the data released and are expecting a negative correction in the data. Traders are still a hesitant to believe that the European market is on its way to recovery.
Not only did the news of Europe recovering give a ray of hope to the financial sector worldwide, but also gave a push to the price of oil barrels which increased by $1 a barrel.
German gross domestic product or GDP for the first quarter of the year out performed the forecast. The GDP for the first quarter had a rise of 1.5% compared to the forecast rise of 0.9%. Even the French Gross Domestic Product showed a healthy rise of 1%.
Gold was bid for $1509.39 per ounce which was higher than the previous price band of $1502.35.Silver per ounce costed $35.61 against earlier spot price of $34.60. Experts are expecting both Gold and Silver prices to go higher.
