On one hand, the deflationists are claiming that given the extremely high debt levels in the West, further inflation is impossible. On the other side of the argument, many proponents of inflation are calling for Zimbabwe style hyperinflation. In this business, everyone is entitled to their opinion; however it is my contention that we will get neither deflation nor hyperinflation. If my assessment is correct, once business activity picks up, our world will have to deal with high inflation.

While prices of gold don’t necessarily affect silver prices or vice versa, history has demonstrated that when gold rises or falls, silver usually follows suit.

Gold hit a three-week high above $960 an ounce on Friday as buying linked to the weaker dollar pushed the metal through technical resistance, before paring gains after U.S. consumer sentiment data pressured the euro.

After posting nice returns earlier in the week, the Canadian markets took a well deserved rest during Friday trading. For the tale of the tape: the TSX Exchange tacked on 0.11%, while the TSX Gold Index fell 0.60%, and the TSX Venture Exchange, Canada’s largest junior exploration bourse, added 0.50% with the advancers beating out the decliners by a 415 to 373 margin on a modest 137 million shares traded.

Gold traded sideways through Hong Kong then shot north at the London open and remained range-bound between $951 and $953 for the rest of the day, finishing at $951.60/oz., up $3.60. For the week, gold is up 1.5%.

The resource-rich Canadian markets continued to gain momentum to the upside during Thursday trading with only the gold sector showing signs of weakness. For the tale of the tape; the TSX Exchange surged 2.33%, while the TSX Gold Index fell 0.79% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, added 1.28% with the advancers beating out the decliners by a 432 to 371 margin on 184 million shares traded.

Gold didn’t do much through Hong Kong and London then showed some volatility in Comex trading, reaching an intraday high above $957 around 1 p.m. in New York and tumbling down from there through the Globex, finishing at its intraday low of $948.00/oz., down $3.10. Overnight, gold is little changed.

It was a rather uneventful session during Wednesday trading on the Canadian Markets with the fluctuating price of commodities effecting individual sectors. For the tale of the tape; the TSX Exchange gave back 0.64%, while the TSX Gold Index fell 0.79% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, added 0.79% with the advancers beating out the decliners by a 395 to 354 margin on 152 million shares traded.

Gold got off to a slow start in Hong Kong and trended down through London but shot up around 11 a.m. in New York, hitting its intraday high near $955 two hours later. From 1 p.m. through the Globex close, the yellow metal retreated somewhat, finishing at $951.10/oz., up $2.10. Overnight, gold is trending higher.

Gold traded sideways through Hong Kong and most of London then surged up to an intraday high of $953 at around 9 a.m. in New York only to completely erase the gains less than an hour later. From 10 a.m. through the Comex close gold showed a steep downward trend but reversed course and made up most of the day’s losses on the Globex, finishing at $949.00/oz., down $0.10. Overnight, gold has moved lower.