Daily Bullion Market Update 10/10/11
By Barry Stuppler – MintStateGold.com
German chancellor Angela Merkel and the President of France, Nicolas Sarkozy met this weekend in Berlin. After two days of discussions they finally reached an agreement on most of the key issues. They promised to release a 5 point comprehensive package to stabilize the Euro, and sweeping recapitalization of the European banks by the end of this month. After the announcement, gold, silver and oil markets started rallying in Asia and the Dollar started dropping on the world’s Forex markets. At 11am PDT, gold was up $30, trading at $1,670.00 per ounce.
The Merkel/Sarkozy announcement was more beneficial for Silver, as stabilizing the Euro and recapitalizing the European Banks will hopefully prevent a global recession. Silver was currently trading up $1.01 and at 11am PDT was trading at $32.05 per ounce, on excellent volume. Many technical analysts believe that the recent sharp price correction in Silver has caused the metal to be oversold and a rally back to at least $36 per ounce is highly probably. With the high investor consumption numbers recently reported by the U.S. Mint, I would agree with that analysis.