By Barry Stuppler - MintStateGold.com
After some overnight profit taking and reaching $1,768 per ounce, Gold is back on track. I believe we will see another attempt to break through the psychological resistance price of $1,800 very soon. At 11am PDT, Gold is trading at $1,782 per ounce, up $2.40 on average volume.
Yesterday, banking giant Goldman Sachs announced it is staying long on gold. Due to low real interest rates, slower US economic growth, and rising debt, the bank has also raised its gold forecast for 2012. The report by Goldman states, “We expect gold prices to continue to climb in 2011 & 2012 given the current low level of US real interest rates”. Internationally known Standard Bank predicts that $500 billion of QE3 will add $200 to the gold price early next year. While the fundamental reasons for precious metals remain strong, Goldman going long on gold may also be a bet on Q
Hedge fund manager and billionaire John Paulson shared today that he sold over 11 million ounces of his gold holdings in the SPDR Gold Trust before June 30th 2011. Mr. Paulson still holds 20.3 million ounces of gold in the SPDR Gold Trust. The timing of Mr. Paulson sale was before gold hit its all-time of $1,923.00 per ounce in September of 2011
At 11am PDT Silver is trading at $34.65, up $0.41 per ounce on normal volume. The U.S. Mint will sell 41 million American one ounce silver eagle bullion coins, eclipsing last year’s record of 34 million coins.
Other Important news that affects precious metal prices:
Inventories at U.S. businesses were unchanged in September, the Commerce Department said Tuesday. Economists had been expecting inventories to rise a seasonally adjusted 0.2%.