Daily Bullion Market Update 10/17/11
By Barry Stuppler – MintStateGold.com
Based on the news coming out of Europe, the gold market has moved from $1,667 to $1,697 per ounce. The trading action is very supportive with resistance at $1,700. Most traders and technical analysts believe that when Gold breaks $1,700 per ounce, and I think it will happen this week, Gold should be off and running. Right now, 11am PDT gold is trading at $1,672.80 per ounce, down $7.50 on average volume.
Finance Ministers and Central Bank Governors of the Group of 20 major economies, meeting in Paris last weekend, said they expected to present a “decisive address to the current challenges through a comprehensive plan” at the Oct. 23 summit to Brussels.
UBS is looking for Chinese gold buying to rise in the fourth quarter. Chinese typically accelerate their gold purchases in the run-up to the start of the Lunar New Year, which this year falls on Jan. 23, 2012. Shanghai Gold Exchange (SGE) data indicates that this year’s seasonal run-up in gold purchases has already begun.
Silver traded over the weekend with at $1.10 spread from the lows to the highs. Silver hit $32.65 overnight before seeing profit taking. I believe when gold breaks above $1,700 it should have a positive effect on silver, taking it above $33 per ounce. At 11am PDT, silver is trading down $0.49, at $31.76 per ounce.
Platinum increased $61.60 per ounce last week, closing at $1,554.90, and is still an excellent buy considering that it’s trading at a $128 discount compared to the price of gold.