Daily Bullion Market Update 12/13/11
By Barry Stuppler – MintStateGold.com
After yesterday’s sizeable correction in the price of gold, last night we saw active trading in Asia with gold reaching a $1,654 low before seeing sizeable buying taking the price to $1,679. This morning, in the face of a very strong U.S. Dollar versus the Euro, the price of gold is holding right around the $1,660 support line. At 11am PDT, Gold is actively trading at $1,661.30, down $4.90 from yesterday. Reports coming out of Europe today indicate that investors concerned about the Bank and Sovereign debt crisis are selling Euros and buying physical gold. Many European banks are preparing for the worst, and were very active bidders in today’s U.S. Treasury 10 year note auction to build up their U.S. Dollar reserves.
An exceedingly rare 1787 Gold Brasher Doubloon was sold yesterday for $7.4 million. The doubloon was purchased by an unidentified Wall Street investment firm. This year, Wall Street investment firms have become very active in the rare coin market, and I see that trend continuing for the next few years.
Silver wants to stay about the $31.00 price support area. I have been very impressed by the demand coming out of Asia every time silver dips below $31.00 per ounce. At 11am PDT, Silver is up $0.20, trading at $31.30 per ounce on very heavy volume.
Other Important news that affects precious metal prices:
The federal government ran a budget deficit of $137 billion in November, the Treasury Department reported Monday, keeping its finances in the red for the second month of the fiscal year.