Daily Market Update 7/05/11
Gold is up $23.40 today, trading at $1,510.60 an ounce at 11am PDT. Gold rallied on light trading in Asia, the Middle East, and London, as bargain buying with gold under $1,500 stimulated investors and jewelry manufactures to add to their gold holdings. The rally continued in the U.S., breaking above the important $1,500 level, as an article over the weekend in Barron Magazine, “Get Ready for $150 Oil”, made hedge funds bullish. The article, predicting the price of Crude Oil will be over $150 a barrel by June of next year, has definitely encouraged professional’s to increase their gold holdings. If Crude Oil is $150 next year, a $2,000 Gold price would be highly likely.
The Barron’s article is available at www.mintstategold.com/investor-education/150_crude_oil/
Standard and Poor’s downgrading of Portugal’s debt today increased buying in the gold pits, as traders are re-thinking whether the Euro debt issue is behind us, or has just moved to another country.
Silver is trading at $35.26 at 11am PDT, up $1.32 per ounce on active trading. Silver, Platinum, and Palladium have taken direction from gold today, with increased interest in the precious metal sector. Silver demand in Asia continues to increase, very surprising considering we are in the summer months.
Legislation introduced in Congress to make Gold & Silver Coins exempt from Federal Capital Gains
On June 28th, Utah Senator Mike Lee, South Carolina Senator Jim DeMint, and Kentucky Senator Rand Paul, have introduced the Sound Money Promotion Act, S.1287. This legislation would make Gold and Silver legal tender and eliminate federal capital gains taxes on Gold & Silver Coins. The proposed legislation by Senator Lee would treat gold and silver coins the same as regular U.S. currency in transactions. There is more information on S.1287 in today’s Weekly Market update.
Today’s Other Important News:
The African Chamber of Mines said that South Africa’s gold output during the first quarter of this year fell 9.3% to 44,682.7 kg compared with a revised 49,245.4 kg produced in the fourth quarter last year.