Gold/silver market update for August 20. Following its strongest performance last week in several months, gold and silver posted losses on Monday ahead of the Fed meeting minutes expected to be released tomorrow. Gold gained 4.5% last week and silver an impressive 14.3%. While gold could be negatively affected by a tapering of Fed stimulus, silver is seen to have more room to move higher. Gold has been used to hedge against inflation, and while silver has been purchased for the same reason, it also has considerable industrial demand. In a note to investors, Deutsche Bank analyst Michael Lewis says the bank expects the gold:silver ratio to move back toward 55 provided PMI indicators continue improving. Read more…