Daily Bullion Market Update 9/06/11
By Barry Stuppler – MintStateGold.com
Gold reached $1920.70 in early Tuesday Asian and European trading. Trading was extraordinarily active with very high volume on the electronic exchanges, before significant profit taking which took the price down to $1,862. Gold rallied back and is trading at $1,869.70 at 11am PDT, down $5.80 from Friday’s price.
Tuesday’s $60 gold trading range on higher volatility over the weekend is due to the violence in the Middle East combined with European Sovereign debt fears, low interest rates, and the high seasonal demand for gold and silver. The overall picture for gold and silver is decidedly bullish
Silver is trading at $41.88 at 11am PDT, down $1.21 per ounce from Friday. The Silver price traded up to $43.44 per ounce and down to $41.50 over the long holiday weekend. I was disappointment with Silver’s performance when Gold was hitting its $1,920 highs and Silver did not follow it up, and there was heavy volume. Physical demand continues to be strong with the U.S. Mint selling 3.68 million 1 ounce silver eagles last month, a record for the month of August.
Eurozone Debt Update
Reuters quoted a party official as saying that Angela Merkel, the German chancellor, told parliamentary colleagues that the situation in Greece and Italy was “extremely fragile” Investors’ intense concerns about the likelihood of a Greek default were underlined by Greek 1-year bond yields rising to a record 82.1%; while Finnish, German, and Dutch finance ministers meet today to discuss a demand by Finland for collateral in Greece’s bailout, Italian lawmakers debate an austerity package amid a strike called by the nation’s biggest union.