Daily Bullion Market Update 7/1/11
By Barry Stuppler – MintStateGold.com
Gold is trading at $1,487.20 at 11am PDT, down $19.40 per ounce.
With no clear reason for the selloff, this morning I called some friends who trade precious metals at the New York & Chicago Commodity Markets to ask why gold and silver prices are down today.
Here is what they said:
- Gold took its direction from a sharply lower Crude Oil price and a stronger dollar.
- With the Greek debt problem off the radar, buying gold as a safe haven has decreased
- Concern about Treasury Secretary Geithner’s replacement after he resigns later this year
- Many traders want to be flat ahead of the long holiday weekend, so Gold long positions were sold.
- Recent positive U.S. economic data and a stronger stock market lessen interest in Gold.
- Pre-Holiday light volume trading – anything can happen – Let’s see what happens Tuesday
From the very light trading today, I pick #6. Let’s see how the Asian markets react to a low Gold and Silver price and what the U.S. markets open at on Tuesday.
At 11am PDT Silver is down $0.94, trading at $33.94 per ounce. Silver is taking its direction from Gold and volume is light. Remember, we repeatedly see support for silver in the low $33 price range and Asia loves silver.
Palladium is the only precious metal that is up today and the fundamentals for Palladium are really looking very bullish.