Daily Market Report 9/5/12

GOLD

After the long holiday weekend, the precious metals have returned from the official end of summer to strong bids pushing the market higher. Gold hit $1,701.60 yesterday for the December contract on excellent volume, before falling below $1,700 per ounce on its first attempt to break the psychological resistance level. It seems that it is only a matter of time, and a short one at that, until $1,700 is decisively broken. At 11am PST Gold is at $1,692.80 per ounce, down $4.40 on normal volume.

Dennis Gartman has Turned Bullish of Gold in U.S. Dollar Terms 

“Gold’s going up in all currency terms at this point. Gold seems to be the dominant currency. It doesn’t really matter at this point,” the editor of The Gartman Letter told CNBC on Tuesday. Gold is gaining in euro, yen and dollar terms, he added. “I’m actually bullish for the first time in a long while. I’m actually bullish of Gold in U.S. dollar terms,” he said. 

The National Debt Topped $16 Trillion on Tuesday

Many people believe that China has been doing most of the lending, however you might be surprised to learn who really holds our federal mortgage. Fully two-thirds of the national debt is owed to the U.S. government, American investors and future retirees, through the Social Security Trust Fund and pension plans for civil service workers and military personnel. China, it turns out, holds less than 8 percent of the money our government has borrowed over the years.

SILVER

Silver has continued its ascent alongside Gold and in the last two days has formed a double top at $32.30. At 11am PST Silver is at $32.31 per ounce, down $0.15 on low volume.

PLATINUM

As we have said previously, platinum can move a considerable distance when it rallies. So these bouts of consolidation may be a healthy sign that the market is seeing two-way trading and must absorb selling along the way. As long as there remains good buying on the dips, the rally may well be able to continue higher. At 11am PST Platinum is trading at $1,575 per ounce, up $1.