A couple of interesting things happened on the gold and silver charts on Friday 23 November 2012. First, the price of gold soared with one percent in a matter of minutes. Interestingly this happened right at the LondonPM Fix, a moment in the trading session that is generally marked by sudden drops. The silver price chart looks similar, only with a larger percentage gain. Silver has been leading gold higher, which is a sign of strength.
What exactly was the trigger for the sharp price increase, remains speculation. It could be the failure of the European budget discussions, the US fiscal cliff worries as Peter Schiff pointed out or simply trading by hedge funds. One things remains clear: the price movement happened in a thinly traded market because of the Thanksgiving holiday, which is a sign of cautiousness.