Turmoil in Financial Markets is the Catalyst Behind High Gold and Silver Prices

6:03 AM

July 7, 2016 --Wednesday's release of the Fed minutes from the latest FOMC meeting wasn't responsible for the action we saw yesterday in the precious metals. The Fed explained its reasons behind leaving interest rates unchanged at the June meeting and it kept up appearances that it will hike rates later this year.

It's been all the unfolding turmoil in the financial markets, particularly the banking sector, that continues to put a strong safe-haven bid under the metals market.

Precious metals stocks indexes hit new 30-year highs on Wednesday as silver closed above the psychologically important $20 an ounce level. The white metal may make its second run this week toward the key $21 resistance level.

Gold also continues to roar ahead, up 1% on Wednesday. The bulls are eying the $1,380 level as the next -- and perhaps last -- hurdle before the yellow metal makes a run at $1,400 -- a gold price not seen for three years.

Live prices at MoneyMetals.com show gold currently trading at $1,363.50 per ounce on the global market, and silver is coming in at $19.96.

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