The Metal Review for The Week of August 8, 2011

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The Metals Review
For the week of August 8, 2011

By Daniel Cronin

Precious metals had a very wild ride last week as the markets rallied in the beginning of the week above the all time high at $1,630 and made new highs at $1,685 as the US credit rating was downgraded from AAA to AA+. This will be huge for gold and I would expect to see an influx of buying come in during the week with the price headed over $1,700. Silver has been lagging behind Gold for the last few weeks but I think this is a huge chance for Silver to make up significant ground. Look for Silver to rally above $40 to start out the week as this will move up swiftly.

Copper has had a huge downturn down some 40 cents since the high as this market is getting clobbered with the economy taking a nosedive. This market looks to be headed below $4.00 this week so look out for this level. Next support is $3.85 so look for this market to pause around here and get its bearings straight.