Gold and silver markets have see-sawed of late, reacting to changing economic outlooks in various parts of the world, but the underlying momentum has never been lost. While silver bounced back from recent corrections, gold has touched rising resistance levels.
Demand for gold and silver will remain high in 2011 owing to growth in physical demand and continued investor appetite, according to a Daily Markets analysis. It says the outlook for the precious metals remains bullish.
As per the World Gold Council, precious metals demand will stay high this year with growing Indian and Chinese appetite for the yellow metal, but fresh buying in developed markets of jewelry will depend on economic outlook, Daily Markets said in an analysis.
It says investment and industrial demand are set to witness an upsurge in the upcoming months. Gold has recently touched its rising resistance level but no confirmation of a local top has been seen. The current short-term trend therefore has not been invalidated and the outlook remains bullish. Silver has broken out above previous highs on strong volume and this too is a bullish development.
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