Daily Market Report 01/10/12

GOLD

A combination of a weaker U.S. Dollar caused by possible progress toward implementing tougher budget rules across the Eurozone, and Gold breaking above its 200-Day moving average, drove Gold higher this morning.

A widening of the Chinese trade surplus in December was another positive factor for Gold.  At 11am PDT, Gold is up $21.40 per ounce, trading at $1,633.50 on gold volume.

Jeffrey Currie, head of commodities research for Goldman Sachs Group Inc. (GS), is staying “overweight” on commodities as a rebound in demand revives speculation of shortages, with gold a favorite for 2012 as investors seek a hedge against Europe’s debt crisis. Mr. Currie said today that Gold futures traded on the Comex in New York may climb to $1,940 an ounce in 12 months as U.S. interest rates and inflation are expected to remain low, repeating the bank’s December forecast.

SILVER

Silver took direction from Gold this morning and increased by a larger percentage.  Silver broke above the important $30 per ounce psychological level this morning, but as of 11am PDT couldn’t hold. Silver is trading at $29.92 per ounce, up $0.88 in active trading. If Silver could get back above $30 per ounce and stay there for a few days I would increase my short term bullish outlook.

For Clients and Friends in Southern California, please join us for a special event:

Financial Survival Seminar 2012

Invest for Protection and Profit

Under Today’s Difficult Conditions

Wednesday, January 18, 2012 7:00 PM - 9:30 PM

Skirball Cultural Center

2701 North Sepulveda Blvd.  Los Angeles, CA  90049

Email [email protected] or call 888-454-0444 and ask Laurie for details.