Daily Market Report 01/26/12

GOLD

Federal Reserve Chairman Ben Bernanke said on Wednesday the U.S. central bank was ready to offer the economy additional stimulus after it announced it was likely to keep interest rates near zero until at least late 2014. Wow, what a bullish development for gold and silver owners. The major bull run for Gold and Silver continues with the next resistance level for gold being $1,800 per ounce. At 11am PDT, Gold is up $23.50 per ounce, trading at $1,724.70 on very active volume. 

SILVER

Silver has made a major breakout when it went above $30 and is now heading for the next resistance price level of $35. If you look at last year of silver price performance you’ll see that when silver moved up or down it happened quickly. Silver moved from $36 to $49.85 in a month, and dropped back to $34.34 by the next month. 

Silver built an excellent price base in the later part of 2011, while its fundamental supply/demand facts have improved.  At 11am PDT, silver is trading at $33.62 per ounce, up $0.53 since yesterday. Volume is heavy globally.

Other Important news that affects precious metal prices:

Iran has threatened to pre-empt a European embargo on its oil by halting its exports to the region immediately, a move that could hit economically weak southern European countries. The European Union this week approved a ban on crude oil imports from Iran from July 1, a five-month delay designed to give Greece, Spain and Italy time to find alternative supplies. Athens buys about a third of all its oil supplies from Iran. High quality global journalism requires investment.

Officials in Madrid, Athens and Rome have said they would use the delay to ask other oil producers, including Saudi Arabia, Russia and Iraq, for additional supplies. Emad Hosseini, spokesman for the Iranian parliament’s energy committee, said lawmakers in Tehran were finalizing a draft bill to stop all oil trade with Europe.