Daily Market Report 1/10/13

GOLD

An unexpectedly high Chinese trade surplus has increased Gold demand in Asia, driving up the price in Asian commodity markets over night. At 11am PDT today Gold is up $20.10 per ounce, trading at $1,679.10 per ounce on heavy volume.

PRECIOUS METALS UP ON UNBELIEVEABLE GROWTH IN CHINA’S TRADE SURPLUS

China’s exports surged in December, blowing away analysts’ expectations. China’s December exports jumped 14.1% from a year earlier, up from a 2.9% gain in November, while imports were up 6%, following on from zero growth the previous month, according to data released Thursday by the General Administration of Customs. The blockbuster pickup in shipments helped widen the trade surplus to $31.6 billion in December, trouncing estimates and ballooning sharply from a $19.6 billion surplus in November. Most economists had estimated a trade surplus of $19.6 billion, on export growth of 4.6% and import gains of 3.3%

CAN A TRILLION PLATINUM COIN SOLVE THE U.S. DEBT PROBLEM?

The idea of minting a $1 trillion Platinum coin to solve the debt ceiling dilemma was posed to White House spokesman Jay Carney Wednesday. Carney said, “It’s a tantalizing concept: Since there is no apparent restriction on how many or what denomination of Platinum coins can be stamped by the federal government, all it would take is for President Obama to have one $1 trillion coin struck and deposited in the treasury. Presto, change-o, no more cash-flow problem and no confrontation with recalcitrant Republican House members. Or so the theory goes.”

SILVER

Silver is following the Gold, Platinum and Palladium rally this morning. Silver has shown exceptional strength above the key $30 per ounce support level. Now, I need to see it rally above the $31 per ounce price level. At 11am PDT today, Silver is trading at $31.02 per ounce, up $0.56 per ounce on above normal volume.