By Barry Stuppler – MintStateGold.com
At 11am PDT Gold is trading at $1,616.80 per ounce, down $35.90 per ounce in heavy trading, wiping out yesterday’s gains. The strength of the dollar and liquidations due to equity margin calls added to the downside pressures. On the bullish side, Goldman Sachs continues to recommend long trading positions in gold and reiterate our 12-month price target of $1,860 per troy ounce. Goldman expects that the level of concern over European sovereign debt will continue to drive gold prices, with the potential for a European financial crisis and gold prices between $1,800 and $1,900 an ounce would be well supported.
As silver continues to trade in the $30 range, the price move consistently breaks below the $30 support area and rallies above it. For my short term outlook for Silver to get more bullish, I need to see heavier demand when it hits $30 per ounce. Last night Silver reached $31.25 before seeing sizeable resistance and sizeable selling. Right now, 11am PDT we have silver trading at $29.86 per ounce, down $0.85 per ounce with active trading.
Federal Reserve Chairman Ben Bernanke’s testimony to Congress’s Joint Economic Committee in Washington signaled the Fed may not be finished with attempts to stimulate the economy. He believes Congress and the White House should take steps to aid our weak recovery. Is QE3 coming this month?