Gold and silver prices continued to fluctuate in turbulent markets last week with no real clue as to which direction they are heading. This caused some brokers to cut their short-term expectations for the two precious metals, UBS downgraded their one month forecast for gold from $1,950 to $1,775 and the silver price was reduced to $32 from $46 an ounce. UBS was reported as saying its prior outlook was overly ambitious given the recent slowdown in market momentum. Goldman Sachs also cut its short term forecast for most asset classes.

Growing problems with European debt along with general market fears of a looming economic slowdown will continue to add volatility to the markets with many investors moving into cash. However much of that cash may well get channeled into ‘safe haven’ assets such as gold and silver over the short term.

Long term, many traders remain bullish for the two precious metals with many predicting gold to finish above $2,000 by the year end and above $40 for the silver price.
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