Daily Bullion Market Update 10/14/11
By Barry Stuppler – MintStateGold.com
The recent price action for gold has been very stable and bullish. Gold continues to show excellent support and demand at the $1,660 area. I believe we will see gold break above $1,700 per ounce next week as the Asian markets are strong buyers at this level. With China’s inflation rate at 6.1%, gold and silver purchasing continues to grow. G20 finance ministers and central bankers are meeting tomorrow in Paris. The market expects some action to be taken and address the Eurozone’s sovereign-debt crisis. At 11am PDT gold was trading at $1,680.30 per ounce up $16.50 on good volume.
Silver has had a $1.00 trading range today from $31.65 on the low to $32.65 on the high. Silver is taking direction from the Gold market and showing excellent support. If I am correct and we see Gold break above $1,700 per ounce next week, I would hope to see silver break above $33 per ounce. Right now at 11am PDT silver was up $0.41 per ounce, trading at $32.25.
Other Important news that affects precious metal prices:
The Commerce Department reported today that retail sales in the U.S. rose more than forecast in September, up 1.1 percent. This is the biggest upward move since February.