Daily Market Report 02/27/12

GOLD

We are seeing excellent consolidation in the gold market today.  Today’s entire trading range for gold has been $13, from a low of $1,767 to a high of $1,780.  I think a couple days of base building will give the market what is needed to move towards the next resistance level of $1,800.  At 11am PST, Gold is down $2.60 per ounce, trading at $1,773.60 per ounce on normal volume.

Massive Global quantitative easing is starting to show its effect on the world’s financial markets as precious metals and commodity markets rally.  John Paulson, billionaire Gold investor and hedge fund manager confirmed my observation in statements in made on Friday “Gold is the best hedge against currency debasement as countries inject money into their economies” and “The metal serves as the best long-term alternative to paper currencies”.

SILVER

Overnight trading and physical demand in Asia gave Silver a lot of support.  Trading ranged from $35.11 on the low to $35.75 per ounce on the high, staying well above the $35 support level. At 11am PST, Silver is trading at $35.51, up $0.32 on average volume.

Other Important news that affects precious metal prices:

Pending home sales climbed 2% in January to the highest level since April 2010, when buyers were taking advantage of a now-expired tax credit. The pending-home-sales index rose to 97.0 from a downwardly revised 95.1 reading in December, the National Association of Realtors reported Monday.