The price of gold seems to have no limit, but recent movement in the price of silver points to a potential end to gold's rally.
For a peek into the future of the price of gold, look no further than its precious metal sibling, silver. The poor man's gold has been on the same streak as the yellow metal, but recent moves have some of the most bullish players wondering if precious metals might be headed toward the end phase of their rally -- a point where prices might not get much higher.
Gold futures for December delivery closed Wednesday at $1,310.30 an ounce on a weaker U.S. dollar and expectations that officials will pump more money into the sluggish economy.
But while silver futures are still much cheaper closing at $21.95 an ounce, it has outperformed gold on this recent run. The price of silver this year has jumped 30%, while gold has climbed about 19%. And at one point on Wednesday, silver reached its highest level since October 1980 at about $22 an ounce. Historically, when silver catches gold or even surpasses its rate of growth, it's a sign we've arrived near the end of the rally. (more)
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