Why is the price of gold going up?

ANONYMOUS redditors have shaken up the stock market again just a week after boosting the value of GameStop stock – this time, they've sent the price of silver and gold soaring.

Just a month into the new year, the price of silver soared to its highest in eight years thanks to thousands of active stock market investors on Reddit. But remember, investing is not a guaranteed way to make money. Your cash can go down as well as up.

Why is the price of gold going up?

A week after investors on Reddit's WallStreetBets forum drove up the price of GameStop, users also increased the price of silver after creating similar interest in the commodity.

Some analysts believe gold prices are being led by the massive surge in silver prices, which rose above the $30 mark for the first time since 2013.

US gold futures on the markets steadily traded nearly one percent higher at $1,867.40 an ounce, up from $1,865.50 per ounce the day before.

Why is the price of silver going up?

The price of silver soared to its highest level in eight years on February 1 as day-traders on Reddit targeted the precious metal.

The popular message board had come into conflict with hedge fund managers after betting against those businesses.

Now amateur traders appear to want to exert pressure of a “short squeeze” in silver in order to pressure banks who have bet on its price falling.

The “#SilverSqueeze” movement has gained support from Tyler and Cameron Winklevoss, the venture capitalists who famously sued Facebook founder Mark Zuckerberg and currently run a cryptocurrency exchange.

“The #silversqueeze is a rage against the machine,” Tyler Winklevoss said on Twitter Sunday.

Not everyone using the WallStreetBets board, which has 7.8million members, accepted the squeeze on silver with many believing hedge funds and the media were pushing the price rise.

“[S]top trying to make silver happen, it’s not going to happen,” a Reddit user named snacksandmetal said.

“It's a fool’s errand, it's financial anarchy; somebody is going to get hurt,” said Ross Norman, a veteran precious metals trader.

What is the price of gold today?

Gold traded at $1,849 an ounce and at nearly $60 a gram today on February 1, according to Monex.

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