Daily Bullion Market Update 8/8/11
By Barry Stuppler – MintStateGold.com
Rating agency Standard & Poor’s says it has downgraded the U.S. credit rating from its top rank of AAA to AA+. Rating agencies analyze risk and give debt a “grade” that reflects the borrower’s ability to pay the underlying loans. The safest bets are stamped AAA. That’s where U.S. debt stood for years.
This downgrade of U.S. bonds and notes should be very positive for the Gold price and at 11am PDT we are seeing gold trading over $1,715 per ounce. Gold is up $60 on very active trading, while the DJIA is trading down 500 points.
Silver is up $0.90, trading at $39.40 per ounce at 11am PDT this morning. Trading is very active and in Asia, Silver did trade over $40.20 ounces before correcting back on selling. The Silver price performance is disappointing to me. When gold shows any weakness from these levels I believe Silver will sell off.
I recommend reading todays Weekly Market Report for my insight on the precious metal markets.
Read the report at: www.mintstategold.com/investor-education/cat/markets/