Daily Bullion Market Update 8/5/11
By Barry Stuppler – MintStateGold.com
After yesterday’s 500+ drop in the DJIA, the volatility and volume of trading was the highest day for gold and silver I have seen in months. Today gold has calmed down, with trading in a narrow $18 range compared to $45 yesterday. At 11am PDT gold is trading at $1,655.00 an ounce, up $1.70 per ounce from Thursday’s price. I am very happy with gold trading. Letting gold trade in the $1,640 to $1,680 range for a week would be excellent for establishing a base for the next leg up past $1,700.
I just posted an informative article on the stuppler.com website about the World’s Central banks, showing it’s not too late to buy gold. View the article at the following link.
Silver has had a $2.20 trading range today on normal volume. At 11am PDT silver was down $0.70 per ounce, trading at $38.50 per ounce. Silver is not seeing the heavy demand from Asia that Gold is. The primary motivation of buyers of Gold has been protection against global instability in the financial system and lower interest rates. The primary motivation for Silver is future inflation, and that is still a question mark. Silver needs to get back above $40 per ounce next week to stay short term bullish.
Other Important news that affects precious metal prices:
The U.S. Labor Department said today that hiring picked up slightly in July and the unemployment rate dipped to 9.1 percent, an optimistic sign after the worst day on Wall Street in nearly three years. Employers added 117,000 jobs last month. That’s better than the past two months, which were also revised higher.