After puking over $30 from post-Italy vote highs, gold prices are jumping this morning and have erased the losses. Silver is soaring, breaking back above $17, well above pre-Italy levels...

As Bloomberg notes, some analysts aren’t convinced the rally is over.

More infrastructure spending in the U.S. and low global interest rates may accelerate the pace of inflation, which would renew demand for gold as an alternative asset, Commerzbank AG analysts led by Eugen Weinberg, wrote in a note dated Dec. 2.

Gold may rise to $1,300 in the fourth quarter of 2017 and may reach $1,400 in 2018, according to Commerzbank.

There’s also the possibility of a Trump-led trade war with China, uncertainty from elections in Europe, risks to market stability from the Italian banking sector and complications from Britain’s exit from the European Union.  All those could revive the appeal of bullion.

The sell-off in gold “is a little bit too violent and too short-sighted,” said Chad Morganlander, a money manager at Stifel, Nicolaus & Co. in Florham Park, New Jersey, where he helps oversee about $172 billion. The fund hasn’t pared its positions in SPDR Gold, he said. “We’re expecting gold to start to move higher over the course of the next six to 12 months as interest rates stay anchored below expectations.”

And it seems the surge in physical demand that we have noted is catching up with paper prices...

Helped by a weakening dollar...