By Barry Stuppler – MintStateGold.com
Gold’s price resilience was very impressive this morning. On negative European debt crisis news, gold sold off, at one point reaching $1,627.50 per ounce, while driving up the U.S. Dollar’s value versus the Euro. Sizeable buying appeared, and gold rallied back to $1,657 per ounce. At the same time the U.S. Dow Jones Industrial Average rallied 170 points. Despite gold and equity markets having an inverse relationship in the past, the yellow metal in recent weeks has moved in sync with global equity markets.
At 11am PDT gold is trading at $1,656.40, down $16.40 per ounce on excellent volume.
Moody’s Investor Services warned France’s AAA credit rating could be at risk if the cost to re-capitalize banks stretches its budget too thin.
China’s annual economic growth eased to 9.1 percent in the third quarter from 9.5 percent in the previous quarter, the National Bureau of Statistics said on Tuesday. Tight domestic monetary policy and easing foreign demand has crimped activity, while Hong Kong’s Chinese Gold & Silver Exchange Society, a century-old bullion bourse, started trading gold quoted in yuan.
Silver had a very volatile price range today with a low of $30.35 after the European news, and reaching $32.10 per ounce on the recovery. Silver is trading at $31.90 per ounce, up $0.14 on heavy volume.
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