Daily Market Report 8/23/12

GOLD

Gold rose for a seventh day in a row on Thursday just minutes after the U.S. Federal Reserve’s most recent policy meeting gave an unexpectedly clear signal that our central bank may launch a new round of fiscal easing measures to boost the economy. 

Gold and Platinum prices continued to soar as investors were concerned with supply disruptions. The killing of 44 people in the South African Lonmin Platinum mine combined with a demand from striking miners for a 300% increase in wages and benefits spread fears of a precious metal mining crisis.

At 11am PDT, Today Gold is trading at $1,671 per ounce, up $26 per ounce on heavy trading. Gold crossing $1,670 is important and very bullish. First it’s the highest price Gold has traded at since May 1st, and second it confirms the recent break out after three months of consolidation. Gold could easily test the next resistance level of $1,700 per ounce by next week.

MORE PROFESSIONALS BUYING GOLD

Pimco’s Commodity Real Return Strategy $20 Billion Fund has expanded its holding of Gold from 10.5% to 11.5% (adding $200 million worth, or 124,000 troy ounces) as a hedge against inflation, anticipating further moves by central banks to spur economic growth, said its fund manager.

SILVER

Finally Silver has broken out above the important $30 per ounce level. Many professionals are becoming bullish on Silver, as shown by the fast 2% increase after breaking above $30. Silver is up 9% since the beginning of the week and looking strong. At 11am PDT, Silver is up $0.85 per ounce, trading at $30.50 on outstanding volume.

PLATINUM & PALLADIUM

Both Platinum and Palladium are the star performers for the past week. The rally continues today, at 11am PDT, Platinum is up $16 at $1,540 per ounce, and Palladium is up $20 at $650 per ounce, both on excellent volume.