Daily Market Report 8/21/12

GOLD

There was some important overnight news that affected the Gold price today. First, China indicated that fresh economic stimulus could be on the way by the second half of the year. Second, the US Dollar sold off versus Euro on rumors that the European Central Bank would step up efforts to aid peripheral euro-zone economies. 

Gold has attempted to break above the $1,630 level fifteen times in the last three months, these two developments proved to be enough to finally allow Gold to break above $1,630. There was even a 7,000 lot (700,000 t oz) trade on the Comex system that caused Gold to spike to $1,638 from $1,630 in a matter of seconds. At 11am PDT, Gold is trading at $1,638 per ounce, up $17 per ounce on heavy volume of trading.

SILVER

As the above events occurred, Silver broke above $29 per ounce for the first time since June 18th, on excellent demand. I am seeing some new life in professional Silver traders, who are now calling for $30 per ounce to put Silver back on a bullish trend. At 11am PDT, Silver is up $0.65 per ounce, trading at $29.40 per ounce on the best volume I have seen in months.

PLATINUM & PALLADIUM

Both Platinum and Palladium have been the star performers in the past few trading days. Platinum and Palladium are in short supply and as demand increases the price is more dramatically affected then Gold and Silver. At 11am PDT, Platinum is up $24 at $1,505 per ounce, and Palladium is up $17 at $620 per ounce, both on excellent volume.