By Barry Stuppler – MintStateGold.com
Gold just broke out above the $1600 to $1697 trading range it was well established in for the past 30 days. Currently, at 11am PDT, Gold is trading at $1,725.50, up $25.10 for the day. I believe we will see it test the next resistance level ($1,800) very soon, on the way to making new all-time highs (above $1920 per ounce) before year end.
Concerns are rising over whether the meeting of European leaders today will result in a decisive program to deal with the eurozone debt woes. The summit of 27 EU leaders will release a statement late this afternoon. A preliminary agreement on bank recapitalization was unveiled last weekend, but consensus was not found on the need for 440 billion euros to be provided for the European banking system.
In the past 24 hours Silver isn’t behaving as well as gold. Silver met a lot of resistances and profit taking at the $33.80 level and dropped down $0.50 in the face of gold moving higher. At now at 11am PDT Silver is trading at $33.35, up $0.25 per ounce for the day. It appears that silver needs some time to consolidate above $33 per ounce, before moving must higher.
Other Important news that affects precious metal prices:
Today, the U.S. Commerce Department said sales of new single-family U.S. homes rose by 5.7% in September as prices fell to the lowest level in nearly a year. New home sales climbed to an annual pace of 313,000 in September from August’s slightly revised level of 296,000. Commerce also reported that orders for durable goods fell 0.8% in September almost entirely due to a lower demand for autos and commercial aircraft. Transportation orders sank 7.5%. Economists surveyed had expected total orders to fall by only 1.0%.