Precious metals are showing signs of increased strength this week as both metals have made gains that will satisfy investors as well as keep them hungry for more. US stocks seem to be losing momentum and in the same breath precious metals are gaining it. With more QE tapering on the horizon this might just be the end of the line for US equities which have been making a comeback since record lows experienced in 2009.

Though gold has finally crossed back over the $1,200 threshold, the real test will be to see if the metal can sustain these gains and possibly even build upon them.

Equities on the Way Out

Up until this week US stocks were posting some impressive gains and the investing world was more readily perking up at the thought of investing in US equities. Just as soon as that extreme bullish run began, however, it seems to be coming to an end. This week saw a huge decline in the strength of US equities which has caused many market analysts to worry about the immediate future of the US marketplace. If stocks are cooling off that can only mean one thing; more room for gold and silver to make gains.

The latter stages of this week showed investors that precious metals were back on the rise. After posting large gains on Thursday, metals were able to add some more value on Friday to make this the 5th consecutive week of gains for gold.

Now, with the Fed on the verge of making another $10 billion reduction to QE, the outlook on stocks could not get much more bleak. This fact is only giving the precious metals bulls more confidence that gold and silver are due to make an extended run. It will be interesting to see how next week pans out. As of now it is shaping up like next week will be the most action-packed week we have experienced thus far in 2014.