Daily Bullion Market Update 8/30/11
By Barry Stuppler – MintStateGold.com
At 11am PDT Gold is trading at $1,824.30, up $32.50 per ounce on good volume. Gold has traded in a healthy narrow $21 range today with excellent support overnight in Asia. Gold prices rallied this morning as Charles Evens, President of the Chicago Federal Reserve said that we need to consider further strong easing moves with the labor market in a recession-like state. “I think we need to do more,” Evans said in an interview with CNBC. Evans said he was “somewhat nervous” about the recovery and described the labor market as in a recession-like state.
Demand in India, continues to remain strong with the country’s biggest jewelry maker expecting gold demand to surge in the next three months by 25 percent, year-on-year, to 250 tonnes. India’s cultural festival and wedding season, which begins in September and will peak in October, usually finishes around December. In India, gold jewelry is an essential wedding gift.
India’s monsoon season, which has been satisfactory so far and is a major contributing factor in the wealth of some 235 million farmers in the country, suggests high demand. Gold should therefore be relatively well supported, despite rising risk appetite. To learn more read the article at www.mintstategold.com/investor-education/silver_prices_india_monsoon/
The European Central Bank said today that Gold and gold receivables held by euro zone central banks fell by 4 million euros to 363.248 billion euros in the week ending Aug. 26.
Silver continued to have excellent price support over $40 per ounce and is building an excellent base for the next attempt to set new highs. At 11am PDT Silver is up $0.70 trading at $41.37 per ounce. We are seeing increased demand for Silver in the Asian market which should mean higher prices shortly.