By Barry Stuppler – MintStateGold.com
Gold is off and running again, breaking above the ever important $1,700 psychological resistance level. This could be the start of our yearend rally, taking gold above September’s $1,920 high. I continue to look for $2,011 by the end of the year. At 11am PDT, Gold is up $48.80 per ounce, trading at $1,700.40 on very active and high volume. I believe this breakout signals the acceptance of more quantitative easing as part of the solution for the eurozone crisis, and a high probability that we will see QE3 in the United States. New York Federal Reserve President William Dudley said that the central banks have “not yet run out of bullets”, and that a third round of quantitative easing is still a possibility.
India is set to celebrate Diwali, an important Hindu festival, on Wednesday. India’s gold buying makes them a top consumer of the precious metal and prices typically rise during the last three months of the year, a traditional time for festivals and weddings.
Silver should be the larger beneficiary of the quantitative easing news and the Gold breakout. At 11am PDT, Silver is trading at $33.10 per ounce, up an impressive $1.35 on heavy trading and demand. The break above $33 is important since Silver has been in a $30 to $33 trading range for about a month, building a nice base. If gold starts moving we could easily see Silver back above $35 per ounce, very quickly.
PLATINUM – PALLADIUM
Both metals have taken a back seat to Gold and Silver today, but the value is still there.