Is the Selloff in Gold and Silver Overblown?

As the New Year progresses, many are worried about the position of GLD and SLV in the market. The euphoria of investment in precious metals has turned from the ever-blazing blissful glee to a cloud of worry in some markets.

Today the Gold Volatility Index hit 5.83%, reports SPDR GLD News. Gold has declined by 7.5$ for the last three months while silver has gone down by double that. What does the market hold for the precious metals?

Even though gold has shown signs of technical weakness, predictions from expert traders indicate that a steady rise is coming especially for silver. By the before the end of 2012 Fed Easing predicts that the price of gold will hit a record $2,000 an ounce.

As of now, GLD is at $1670.05 and it has hit the trend line; an indication that is a good selling signal for traders. On the other hand, SLV is a432.36 and predictions from experts in the precious metal market in China indicate that it will hit $50 before the end of this year.

When their performance is analyzed against the performance of other assets in the market, the performance index of GLD and SLV is still better compared to others—reports AGG News!

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