Daily Market Report 02/22/12

GOLD

Just as Gold was consolidating yesterday’s $30 gain in the $1,758 range around 10am PST, we saw a $10 move higher on a 10,000 contract (1 million ounces) purchase. Gold now has clearly broken above the $1,760 per ounce resistance level, and is on the way to $1,800 per ounce.  Overnight trading volumes in Asia and Europe have been excellent.  At 11am PDT, Gold is up $1,771.80, up $19 per ounce on sizeable volume.

With the Greek bailout taken care of, the financial markets are looking for any debt contagion that may have spread to other PIIGS countries. Spain, Portugal and Italy are looking carefully at the terms and conditions demanded by creditors, ECB and IMF for Greece’s bailout. This week’s rally in the Euro means that the Eurozone successfully kicked the can down the road. 

SILVER

Silver trading is disappointing in light of the breakout in gold.  Trading volumes were low in Asia and Europe overnight.  Silver trading over the past 24 hours has been range bound between $33.80 to $34.50 per ounce.  At 11am PST, Silver is trading at $34.36, up $0.26 on light volume.

PLATINUM

Platinum continues to rally, up another $30 per ounce today. The platinum market remains constrained by continued supply disruptions in South Africa, where a strike at Impala Platinum’s Rustenburg operations entered their fifth week, with losses having now surpassed 80,000 ounces.

Other Important news that affects precious metal prices:

The National Association of Realtors reported today that Sales of U.S. existing homes rose 4.3% in January and inventories fell to nearly seven-year lows, as lower prices, unusually warm weather and an improving economy all lifted demand.