Daily Bullion Market Update 5/24/11
By Barry Stuppler – MintStateGold.com
Gold has broken through its resistance level today, closing at $1,523.60, up $7.80 an ounce on excellent volume. It was confirmed today that China has overtaken India as the world’s largest purchaser of gold at 90.9 million tons in gold bars and coins for the first quarter of 2011. This is up 123% from 40.7 tons last year during the same period. India, meanwhile, has purchased only 85.6 tons of gold this year. See the complete article at http://www.mintstategold.com/investor-education/factors_driving_china_gold_demand/
In the face of an extraordinarily strong U.S. Dollar, the value of gold measured in Dollars is doing surprisingly well. Both European and American investors are looking at gold as a safe haven against any sovereign default.
The Greek debt crisis continues to worsen as default threats drive prices. The price of gold, as measured in Euros, is setting record all-time highs, and the interest rates on Greek debt are extraordinary for a developed country.
Silver ran with gold this morning closing up $1.07 at $36.09 an ounce in active trading. If Silver doesn’t re-test the $34.50 area by Friday, I think we are heading higher. Looking at the Silver price from a technical viewpoint; it has shown excellent support at the $34.57 area and now has broken through resistance at the $36.04 area. The next resistance area is $37. On the negative side of silver, Italian jewelry manufacturers have stated that jewelry demand for sterling silver has declined since the beginning of the year.
Today’s Other Important News
Purchases of new houses rose in April for a second month as the market struggled to recover from a record low. Sales climbed 7.3 percent to a 323,000 annual pace last month, figures from the Commerce Department showed today