Daily Market Report 12/06/16

GOLD

It was announced this morning that the U.S. trade deficit jumped almost 18% ($42.6 billion) in October as imports rose to the highest level in 14 months. Which is interesting to hear as the dollar rose slightly today.

Today is an exciting day as Gold becomes an acceptable investment in Islamic finance for 1.5 billion Muslims. The Accounting and Auditing Organization for Islamic Financial Institutions adopted Shariah-compliant rules for trading Gold. This is a major announcement for the future increase in the price of Gold. This allows the Indian Financial Institions (valued around $2 trillion USD) to buy Gold on financial markets, which could have some major impact on the price of Gold. Throughout history there has been a strong demand in the Islamic community to own the default currency (Gold). To learn more please see the link below.

http://www.mintstategold.com/investor-education/new-gold-standard-for-islamic-finance

At 11am PST Gold is trading at $1168.55 down $5 on below average volume as Wall Street investors wait to see how much of an impact the Islamic Financial Institutions will have on Gold demand.

SILVER

Silver is following Gold’s lead today, with an average amount of trading and a relatively tight spread between $16.58 and $16.97. However, it is still a good sign to see Silver testing the $17 level again as it should clear that level this month. At 11am Silver is trading at $16.73 down by $0.03 on average volume.