Gold, Silver prices Forecast for week july 18 2011

Gold, Silver prices Forecast for week july 18 2011 : Gold was the stand-out performer on commodity markets last week, striking a record high close to $1,595 as investors sought its traditional safety amid an escalating euro zone debt crisis. Fears of a debt default in Greece and perhaps other struggling euro zone members were compounded by growing concern that politicians in Washington are unable to hammer out a deal to allow a rise in the government's borrowing limit.

Gold also won support after US Federal Reserve chairman Ben Bernanke said on Wednesday that the US central bank was prepared to renew its stimulus efforts if the American economy remains feeble. By late Friday on the London Bullion Market, gold jumped to $1,587 an ounce from $1,541.50 the previous week. Silver rallied to $38.17 an ounce from $36.28.

August gold prices rose 80.0 cents, or 0.1 percent, to close at $1,590.10 an ounce on the Comex in New York. The yellow metal traded between $1,576.00 and $1,592.40. Gold has risen 11.9 percent in 2011.

Gold prices will continue to find strength next week july 18 2011, as the debt-ceiling talks in the U.S. drag on and investors fret about the chances for default for some European economies, If an agreement is reached on lifting the U.S. debt ceiling, prices could pull back, but buying interest under the market will limit the downside for gold prices.

A Reuters poll this week showed analysts expect gold prices to average $1550/oz in 2012.

Silver prices
Silver followed gold, moving higher on the day and week. Silver prices for September delivery settled up 37.7 cents, or 1.0 percent, to $39.071 an ounce. The metal’s intraday low was $37.890 while its high was $39.130. Silver prices surged 6.9 percent this week and have jumped 26.3 percent in 2011.

Commitments of Traders:
Speculators were bullish on the precious metal complex, net length for gold futures soared to 29 822 contracts while silver rose to 20 503 contracts. For PGMs, net lengths for platinum futures and palladium futures increased to 17 117 contracts and 13 399 contracts respectively.