By Barry Stuppler - MintStateGold.com
At 11am PDT gold is trading at $1,742.50 per ounce, up $27.50 on very active trading. Gold did hit a new all-time high at $1.782 in overnight trading in Asian markets. This is a pivotal point for the U.S. Dollar & Gold, and yes, gold has gone parabolic as it enters Phase II of the bull market. The downgrading of U.S. Debt by Standard and Poor’s has caused an upgrade of gold by the World’s Central Banks and international investors. J.P. Morgan’s Commodity analysts Colin Fenton and Jonah Waxman were quoted late yesterday to say “Gold could surge to US$2,500 per ounce or higher by the end of 2011”.
On July 18th Gold broke above $1,600 per ounce and Silver broke through and was trading above $40. In the last two days, Gold is up $100 and silver is down. Silver is not taking its direction from Gold, but from the general stock market. An interesting anomaly is that yesterday Silver was up $0.90 and silver mining shares were lower. Today, Silver is down $1.50 per ounce at 11am PDT, trading at $37.90 and silver mining shares and funds are higher.
Waiting for Bernanke
At around 11:30 PDT today, there will be a report from the Federal Reserve (FOMC) meeting. I believe the statement that will be released after the meeting will give us a hint about when the QE3 is coming.
Other Important news that affects precious metal prices:
China reported today that their inflation rate continues to rise. July’s rate was reported at 6.5%