Daily Bullion Market Update 7/1/11

By Barry Stuppler – MintStateGold.com

GOLD

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:

  1. Gold took its direction from a sharply lower Crude Oil price and a stronger dollar.
  2. With the Greek debt problem off the radar, buying gold as a safe haven has decreased
  3. Concern about Treasury Secretary Geithner’s replacement after he resigns later this year
  4. Many traders want to be flat ahead of the long holiday weekend, so Gold long positions were sold.
  5. Recent positive U.S. economic data and a stronger stock market lessen interest in Gold.
  6. 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.

SILVER

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

Palladium is the only precious metal that is up today and the fundamentals for Palladium are really looking very bullish.

Posted in: Bullion & Metals

About the Author:

Barry Stuppler & Co. offers a great selection of gold and silver, rare and investment quality coins to our valued clients. As the current elected president of the 30,000 member American Numismatic Association (ANA) and the president of the California Coin and Bullion Merchants Association (CCBMA), Barry Stuppler brings expertise and integrity to the numismatic trade.

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