Daily Market Report 01/27/12

GOLD

In the wake of the Fed’s policy changes on Wednesday, when the Fed indicated that interest rates were going to be held down until late 2014, inflation would not breach 2% but long term rates could climb to 4% or more, gold bolted through $1,700 and quite rightly. And this was not U.S. gold buying as the gold ETF’s did not change that much. Right now the primary gold buying is coming from Asia, Europe and the Middle East. Gold is up again today, and at 11am PDT it is trading at $1,733 per ounce, up $8.30 per ounce on average weekend volume.

SILVER

Silver continues to be stronger than gold and better demand. At 11am PDT, Silver is up $0.30, trading at $33.92 per ounce in active trading.  Any news unfolding in Greece over the weekend could be very bullish.

News coming out of Europe shows a willingness of the ECB and IMF to provide loans if Greece can settle its current debt crisis.