By Barry Stuppler – MintStateGold.com
Gold just missed making it to “Eleven Days in July”… the longest Gold rally I can remember since the 1970’s! Gold ended it’s rally today after ten days in a row. At 11am PDT going was trading at $1,597.90, down $5.90 per ounce on news of a possible deal made in Washington DC on lifting the Debt Ceiling.
India is fighting a very high inflation rate, so Gold has become the primary means of wealth preservation, just as in China and other parts of Asia. According to the most recent data from the World Gold Council, India and China accounted for 58% of global physical gold demand in the first three months of 2011.Substantial Indian buying has surprised traders because its gold market is usually quiet in June. India Gold buyers have traditionally bought gold in seasonal patterns, dictated by festivals such as Akshaya Tritiya in May and Diwali in September, as well as the wedding season, which runs from September to December.
Silver took a pause in its rally and was down $.38 per ounce, trading at $39.87 at 11am PDT. We saw some profit taking today on average volume, but the uptrend is firmly in place as Silver benefits from following Gold’s upward breakout very closely. Yesterday, Silver popped over 3%, signaling a return of the silver investors that were spooked in early May.
Other Important news that effects precious metal prices:
New construction of U.S. houses jumped in June to the highest level in five months, the Commerce Department estimated Tuesday. Starts rose 14.6% in June to a seasonally adjusted 629,000 annualized units, stronger than the 580,000 pace expected by economists surveyed by Market Watch.