Fears Of An Italian Debt Crisis Caused Gold To Rally
Fears of an Italian debt crisis caused Gold to rally $17 per ounce this morning. Today, Italy stated that they are thinking about increasing spending and cutting taxes to stimulate the economy. This would cause them to raise Italy’s debt and breach EU Budget rules. This statement resulted in increasing safe haven demand for Gold and Silver. At 11am PDT today, Gold is trading at $1,203 per ounce, up $14.50 on excellent volume.
When the Italian statement hit the market, Silver soared, hitting a high of $14.90 per ounce. At that point many professional traders short-sold the COMEX December Silver contract, because the $15 level is a major resistance point. At 11am PDT today, Silver is up $0.16 per ounce, trading at $14.66 on strong volume.