Because all the metal products are tied together. When silver tanked that thursday a few weeks ago it dragged all the rest of the metals down with it. Granted they didn't fall as fast or as hard, but they fell.
A good part of the reason gold is up as much as it is relates to the perceived notion that there is a commodity bull market in place. When something occurs to alter that perception, the price of gold will start falling off.
If you don't like that answer, you could look at it from the inflation side. Part of the reason for golds runup is the perceieved notion that it will be a good inflation hedge. The only definitive excuse for inflation corcerns is the rising commodity prices. Were they to come off, there would be less belief that inflation is a sufficient concern to warrant hedging.
Ofcourse it may have absolutly no effect at all...
A good part of the reason gold is up as much as it is relates to the perceived notion that there is a commodity bull market in place. When something occurs to alter that perception, the price of gold will start falling off.
If you don't like that answer, you could look at it from the inflation side. Part of the reason for golds runup is the perceieved notion that it will be a good inflation hedge. The only definitive excuse for inflation corcerns is the rising commodity prices. Were they to come off, there would be less belief that inflation is a sufficient concern to warrant hedging.
Ofcourse it may have absolutly no effect at all...
Quoting YTTKDislikedAccording to the LME.com website they do not trade gold or silver so why should this have an impact?Ignored