Daily Bullion Market Update 12/07/11
By Barry Stuppler – MintStateGold.com
As Gold trades higher on excellent volume, the market is back on track today. Gold has been trading in the $1,700 to $1,767 range for the past week, building excellent support. I would expect to see a break above the $1,770 resistance to move the market quickly to test $1,800 within the next week. Considering the eleventh-hour negotiations by EU ministers in Brussels, it looks like a final decision to create a much bigger financial stimulus package is coming. This package should be presented at Friday’s European Union summit, and will include running two separate rescue funds and winning increased support for the International Monetary Fund. At 11am PDT, Gold is trading at $1,741, up $13.70 per ounce with sizeable volume.
Silver is trading in a very narrow $0.30 range, with global market uncertainty continuing to keep many investors on the sidelines. Once a European financial rescue package is announced I would expect to see serious investors adding silver to their holding. At 11am PDT, Silver is down $0.20, trading at $32.54 per ounce on light trading.