By Barry Stuppler - MintStateGold.com
At 11am PDT Gold is trading at $1,616.20, up $2.40 per ounce on average trading volume. Today the gold market has had a very narrow trading range of only $10.00, as it awaits news from Washington on the debt ceiling. All I can say after listening to the President Obama and Speaker Boehner speeches last night is that the longer the crisis drags on, the worse the problem will get. If we don’t see an agreement by Thursday, the Stock Market should drop dramatically and Gold could increase $50 or more in one day. Some financial analysts from around the world are calling our government dysfunctional and feel there is a serious possibility our government will not lift the debt ceiling and that the U.S. credit rating will drop.
Silver is up $0.38 per ounce, trading at $40.76 per ounce today on light trading. Oversees trading last night was directionless, with support at $40 and resistance at $41. Markets are waiting to see what happens on the debt ceiling. The longer Silver can stay above $40 the more bullish I get.
Other Important news that effects precious metal prices:
- Consumer confidence rose in July on improved expectations, the Conference Board reported Tuesday. The nonprofit organization said its consumer-confidence index increased to 59.5 in July from a downwardly revised 57.6 in June.
- U.S. home prices rose in May for the second month, up 1%, according to the S&P/Case-Sheller 20-city index.