Daily Market Report 01/31/12

GOLD

Wow, what a month for gold investors! Gold was up $170 per ounce, or (10.8%), trading at $1,735.80 at 11am PDT today with active volume.  As for today, the market held a tight trading range, watching developments at the European debt crisis meeting.

The mood in Europe brightened on Tuesday, with European Union political leaders agreeing in principle to a permanent 500-billion-euro bailout fund. The European Stability Mechanism (ESM) is a fiscal compact that requires governments to take corrective actions when budget deficits stray from targets.

Elsewhere in the region, Greek Prime Minister Lucas Papademos said "significant progress" has been made and that a deal between the government and its creditors could be reached by the end of the week.

SILVER

The silver price increase for January was even more extraordinary that gold. At 11am, PDT Silver is trading at $32.56 per ounce, up $0.06 for the day and up $4.68 per ounce (16.7%) for the month. By Friday, I’ll have January’s U.S. Silver Eagles and Canadian Silver Maple Leaf sales numbers.  I expect them to be at a record pace, as domestic demand for physical Silver continues to grow.