Daily Market Report 02/09/12

GOLD

Today, Greek political leaders clinched a long-stalled deal on reforms and austerity measures to secure a second international bailout from the IMF and EU to avoid a chaotic default, hours before the country’s financial backers began meeting in Brussels.  The European Central Bank maintaining interest rates the current, unchanged rate and the Bank of England expanding its asset-purchase program by 50 billion pounds are also positive headlines for the metals as inflation and burgeoning debt remain key themes.  Gold’s near term target to the upside is the triple top at $1,760. At 11am PDT, Gold is trading at $1,737.90, up $2.20 per ounce on good volume.

China’s consumer price inflation unexpectedly accelerated to 4.5% in January on the boost to spending from a week-long holiday, limiting room for monetary easing as Europe’s debt crisis dampens exports and the property market cools.

SILVER

Silver has been working to find a supported trading range.  Earlier this morning silver hit $34.55 per ounce before seeing sizeable selling driving it back down to $33.75 per ounce. Right now, at 11am PDT Silver is trading at $34.02, up $0.10 per ounce with an average volume of trades

Both Platinum and Palladium hit fresh multi-month highs earlier, still supported by supply disruptions in South Africa.

Other Important news that affects precious metal prices:

The U.S. Commerce Department reported today that wholesale inventories level rose 1.0% in December, the second strong gain in the past three months. The increase was larger than expected. Economists had forecast an increase of about 0.4% in the month.

Freddie Mac stated today that the average rate on the 30-year fixed-rate mortgage remained at 3.87% in the week ending Feb. 9, matching a record low set in the prior week.